Prohibition and the Gangsters

Causes of prohibition

• Driven by the ​temperance movement​ (e.g., ​Anti-Saloon League, founded ​1893; Christian Temperance Union, 1874).

• Arguments included alcohol's link to ​domestic violence, sin, economic inefficiency, and wartime grain waste.

Legislation

Enabled by the ​18th Amendment (1919)​​ and the ​Volstead Act (1920)​

Positive effects (claimed)

• Alcohol consumption and liver disease deaths fell (from ​29.5 to 10.7 per 100,000​ between ​1911-1929).

• A ​1925​ survey suggested ​~40%​​ of the population supported enforcement.

• Some effective agents, like ​Izzy Einstein and Moe Smith, seized ​~5 million bottles​ of alcohol

Negative Effects & Failure

• Economic Harm:​​ Loss of jobs in saloons/bars and massive lost tax revenue (estimated ​​$11 billion lost by 1931).

• ​Rise of Organized Crime:​​ Created a black market for ​bootlegging, individuals sought to smuggle Canadian whiskey and Mexican tequila into USA. ​Speakeasies​ proliferated (over ​32,000 in New York).

• ​Health Risks:​​ Poisoning from bad ​moonshine​ (e.g., ​34 deaths in 4 days​ in NYC from wood alcohol).

• Poor Enforcement:​​ Underfunded (initial budget of ​​$2 million). Widespread corruption, bribery, and public defiance. In New York (1921-24), only ​20 convictions​ resulted from ​6,904​ Prohibition cases.

Role of Gangsters

• Al Capone's Chicago gang earned ​~$105 million/year​ from illegal alcohol, gambling, and protection rackets.

• Violence was extreme (e.g., ​1929 Valentine's Day Massacre, 7 were killed as Capone sought to protect land from Bugs Moran).

• He was eventually convicted for ​tax evasion​ in ​1931, not Prohibition crimes.

Repeal

Prohibition was repealed in ​1933​ due to its evident failure, enforcement difficulties, and organized opposition.