January 16, 1919: Prohibition Is Authorised

The 18th Amendment was the solution of many years of initiatives by the grassroots temperance movement.

At the time, practically 75% of the New York State’s profits was derived from liquor taxes. With Prohibition in impact, that income was straight away dropped. In the end, prohibition value the federal govt a overall of $11 billion in dropped tax earnings and charge more than $300 million to enforce. Lots of states and the federal govt would occur to rely on cash flow tax profits to fund their budgets going ahead.

The closing of breweries, distilleries and saloons led to the elimination of 1000’s of work. Big breweries like Anheuser-Busch switched to non-intoxicating and lawful “near beer” with Bevo, marketed as a “soft drink.”