Prohibition, which lasted in the United States from 1920 to 1933, led to several significant problems:
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Rise of Organized Crime: The banning of alcohol created a lucrative black market for illegal alcohol, leading to the rise of organized crime syndicates. Figures like Al Capone became notorious for their involvement in the illegal production and distribution of alcohol, contributing to widespread violence and corruption in cities.
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Loss of Tax Revenue: Before Prohibition, alcohol sales provided a substantial source of tax revenue for the federal and state governments. With the ban on alcohol, these governments lost a significant amount of income, which was particularly problematic during the Great Depression when financial resources were desperately needed. This loss contributed to calls for the repeal of Prohibition.
These issues, among others, ultimately led to the repeal of Prohibition with the 21st Amendment in 1933.