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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.
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.
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It turned alcohol into a source of tax revenue.