How Did The Prohibition Affect The Economy Of The 1920's

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"A great social and economic experiment, noble in motive and far-reaching in purpose" President Herbert Hoover’s description of the prohibition. 1920-1933 is the period when the eighteenth amendment was set in place which established the Prohibition. The Prohibition was a ban on alcoholic beverages where they could not legally be manufactured, transported, or sold in the U.S., this was supposed to have a positive impact on the country. Prohibition in America during 1920s was largely ineffective because the the economy started to decline and it negatively affected the American people, although there were some positives. The main effect of the Prohibition was the economy. The economy started to decline during the prohibition, it was thought …show more content…

Since there was such a high demand for alcohol in America when it became illegal many bar owners and other people started speakeasies, these were bars that sold alcohol illegally. The owners of speakeasies got away with illegally selling alcohol by, using a password system to restricted the type of people who entered, and other more famous speakeasies bribed the police. Speakeasies had two ways of getting alcohol, either by importing it from Canada, Mexico or the Caribbean, or by producing it themselves. Home production of alcohol was called bootlegging. Although alcohol was illegal there was some ways to obtain it legally. The only way to legally obtain alcohol was through doctors, who were given permits to prescribe alcohol, and members of the clergy (History and Impact of Prohibition on America). Once criminal activity was normal, the door opened to other illegal activities, such as gambling and prostitution. Opium usage was also increased with alcohol being illegal due to the prohibition (In What Ways did Prohibition change US society in the 1920’s - Assignment Example). The prohibition negatively effected and caused much crime within the American

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