"The standard, schoolbook history of alcohol prohibition in the United States," writes Donald J. Boudreaux, "goes like this:
Americans in 1920 embarked on a noble experiment to force everyone to give up drinking. Alas, despite its nobility, this experiment was too naive to work. It soon became clear that people weren't giving up drinking. Worse, it also became clear that Prohibition fueled mobsters who grew rich supplying illegal booze. So, recognizing the futility of Prohibition, Americans repealed it in 1934.This popular belief is completely mistaken. Here's what really happened:
National alcohol prohibition did begin on Jan. 16, 1920, following ratification of the 18th Amendment and enactment of the Volstead Act.
Speakeasies and gangster violence did become familiar during the 1920s.
And Americans did indeed keep drinking.
But contrary to popular belief, the 1920s witnessed virtually no sympathy for ending Prohibition. Neither citizens nor politicians concluded from the obvious failure of Prohibition that it should end.
"There's no doubt that widespread understanding of Prohibition's futility and of its ugly, unintended side-effects made it easier for Congress to repeal the 18th Amendment," continues Boudreaux. "But these public sentiments were insufficient, by themselves, to end the war on alcohol.
Ending it required a gargantuan revenue shock -- to the U.S. Treasury. "
And what was that shock?
What happened in 1930 that suddenly gave the repeal movement political muscle? The answer is the Great Depression and the ravages that it inflicted on federal income-tax revenues.
I think we've all heard numerous opponents of the War on Drugs come up with a solution along the lines of "Legalize it and tax it." As if there should be a tax on all things -- which, frankly, quite a few folk think there should be.
Seems the power to tax is the power to destroy, yes, but not only that which is taxed, but morality itself.
(Read the whole thing.)
Posted by Craig Ceely at July 30, 2007 03:59 PM