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Question
why was the repeal of the 18th amendment beneficial during the great depression?
alcohol became a valuable luxury export.
prohibition had led to the 1929 economic crash.
it turned alcohol into a source of tax revenue.
Brief Explanations
- The claim that prohibition caused the 1929 crash is false; the crash stemmed from financial market failures and overproduction. Alcohol was not a major luxury export during the Depression, as global demand was low. Repealing the 18th Amendment legalized alcohol, allowing the government to collect excise taxes on its production and sale, which generated much-needed revenue during the economic crisis.
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It turned alcohol into a source of tax revenue.