Eighteenth Amendment to the United States Constitution
Those who supported prohibition expected the sales of household goods and clothing to go up dramatically. Many expected real estate and rents to rise as bars closed and neighborhoods were cleaned up. Many producers of soft drinks, juices and chewing gum expected sales to go up as Americans had to find new ways of entertaining themselves. None of this happened. Instead, the unintended consequences proved to be a decline in amusement and entertainment industries across the country. Restaurants failed, as they could no longer make a profit without legal liquor sales. Theater revenues declined rather than increase, and few of the other economic benefits that had been predicted came to pass. Prohibition proved to be largely negative for the economy. Jobs in breweries, distilleries and bars were lost by the thousands. Truckers, waiters, barrel makers and many other related workers had large numbers of jobs lost. Perhaps the largest unintended consequence was the loss to the government in tax revenues. The state of New York lost almost 75 percent of its revenue. The federal government lost over $11 million in tax revenues while the cost to enforce it was over $300 million.