Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

why was the repeal of the 18th amendment beneficial during the great de…

Question

why was the repeal of the 18th amendment beneficial during the great depression?

prohibition had led to the 1929 economic crash.

it turned alcohol into a source of tax revenue.

alcohol became a valuable luxury export.

Explanation:

Brief Explanations
  • The claim that Prohibition caused the 1929 crash is incorrect; the crash stemmed from financial market and economic policy issues, not Prohibition.
  • Repealing the 18th Amendment (ending Prohibition) legalized alcohol, allowing governments to collect excise and sales taxes on alcohol products, which was critical for generating revenue during the cash-strapped Great Depression.
  • While some alcohol was exported, this was not a primary, widespread beneficial impact compared to domestic tax revenue.

Answer:

It turned alcohol into a source of tax revenue.