Ratification Of Prohibition In The 1920's

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I believe that this investigation will find that the ratification of the 18th Amendment, banning the sale, transportation, and public consumption of alcohol, had a significant impact on the American economy of the 1920’s. This is because of the economic changes that occurred in different industries in the years following the ratification of Prohibition. The ratification of Prohibition was significant to the industrial aspect of the American Economy in the 1920’s as indicated by increased factory productivity and higher wages. Prior to the passing of Prohibition, as many as five hundred men would be absent at the Cadillac production plant on Mondays, usually due to the effects of drinking from the night before. However, following the ratification…show more content…
In the 1920’s standards of living were 19% higher than they were in Pre-Prohibition Era America in part, due to a wave of rampant consumerism, or the social desire acquire consumer goods. Moreover, due to the absence of alcohol spending and increased wages, Americans could now fund their purchases of new appliances another consumer goods that had previously been unavailable to them. The Prohibition Amendment was “turning that volume of spending money which formerly went for drink toward the purchase of other things, that alone would help to explain the vast scale on which our people are buying shoes, clothing, glazed dishes, chairs, tables, telephones, victrolas, radio sets, vacuum cleaners, electric washing machines, and a host of other things.” The purchasing of these luxuries during this era was significant in regards to the American economy because the purchasing of these goods caused a greater influx of monetary gains in general for American society and helped boost the stock market to new highs. In addition to the rise of consumerism and the economic boom of this time, communities also saw an upturn as a result of the closure of bars and saloons. Following the ratification of Prohibition on January 19th, 1919, bars and saloons nationwide were forced to close their doors, and approximately $100 million was dedicated towards repurposing these establishments into ones that were needed by the communities. In the place of what were once saloons and bars rose essential health institutions such as free dental clinics, maternity clinics, district nursing, hospitals, and other essential establishments. While some saloons were turned into medical institutions, others were converted into

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