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The economic impact of prohibition was immense as the US government was unable to collect taxes from an industry that generated billions of dollars in revenue.rohibition allowed organized crime to flourish at an exponential rate and it also saw an increase in consumption of liquor and bootlegging. Corruption among government officials increases and also more murders were being committed in the country.
As we mentioned, Prohibition created a vast illegal market for the production, trafficking and sale of alcohol. In turn, the economy took a major hit, thanks to lost tax revenue and legal jobs. Prohibition nearly ruined the country's brewing industry. Anheuser-Busch survived Prohibition by turning to other products, such as ice cream, root beer, malt extract and corn syrup. The city of St. Louis boasted 22 breweries before Prohibition, and a mere nine reopened after it ended. Keep Reading Below The advent of the Great Depression (1929-1939) caused a huge change in American opinion about Prohibition.