Beer in the United States
On January 16, 1919, the Eighteenth Amendment to the United States Constitution was enacted into law, creating the Prohibition era, wherein the production, sale and transportation of alcoholic beverages was made illegal. All legal American brewing came to a halt when prohibition was imposed, though the earlier temperance movement had already reduced the number of breweries significantly. Only a few breweries, mainly the largest, were able to stay in business by manufacturing near beer, malt syrup, or other non-alcohol grain products, in addition to soft drinks such as colas and root beers. Production and shipping of alcohol was largely confined to illegal operations that could deliver compact distilled beverages—smuggled rum and domestic moonshine—more efficiently and reliably than bulkier products such as beer.
Prohibition in the United States
Most economists during the early 20th century were in favor of the enactment of the Eighteenth Amendment (Prohibition). Simon Patten, one of the leading advocates for prohibition, predicted that prohibition would eventually happen in the United States for competitive and evolutionary reasons. Yale economics professor Irving Fisher, who was a dry, wrote extensively about prohibition, including a paper that made an economic case for prohibition. Fisher is credited with supplying the criteria against which future prohibitions, such as against marijuana, could be measured, in terms of crime, health, and productivity. For example, "Blue Monday" referred to the hangover workers experienced after a weekend of binge drinking, resulting in Mondays being a wasted productive day. But new research has discredited Fisher's research, which was based on uncontrolled experiments; regardless, his $6 billion figure for the annual gains of Prohibition to the United States continues to be cited.