Events

Prohibition

Prohibition

Full Name
Prohibition
Event Type
Start Date
1920
End Date
1933

Prohibition in the United States is the 18th Amendment of the US Constitution that banned the manufacture, production, importation, transportation and sale of intoxicating liquors from 1920 to 1933. This period was described by President Herbert Hoovers as “the great social and economic experiment”, with some of the religious perspective labelling Prohibition as a social reform, an action to cleanse the American soil and restore the founding virtues of a dignified republic. The Prohibition era was also characterized as a period of gangsterism, competition, and violent turf battles between criminal gangs, instinctively associating it with images of Al Capone, and the Valentine’s Day Massacre. While some states refused to enforce Prohibition, it dramatically decreased the people’s drinking, and it continues in some parts of the country to this day.

Entity Types

Black Market

Industries

Alcohol

Mentioned by the Following

Industries

Alcohol

  • During Prohibition, alcohol was still Legal in Canada to make and sell
    • Mobsters would smuggle alcohol into the US from Canada
    • Canadians made lots of money from this setup


Economic Impacts (compare to Cannabis in late 2010s)

  • Artificially reduced the supply of alcohol in the US
  • Artificially increased the "black market" price of alcohol in the US
  • High prices helped smugglers earn greater profits
  • Greater profits incentived smugglers even further
  • Increased policing and control further increased the prince, further increasing smuglers profit and desire to smuggle more in
  • Overall Impact - Canadian Alcohol Companies became rich and gained a strong foothold in the US markets