Prohibitionism destroys the banking system

Almost everywhere in the world people sip a cold one in biergartens, backyards, sidewalk cafés–but Wizened Christian Temperance Union Amerika, under laws left over from Andrew Volstead’s Minnesota and the Anti-Saloon League–ain’t one of them places. Fortunately Americans have a choice. You can choose not to vote–people in Australia and Brazil have no such option. You can also choose to vote for Libertarian freedom instead of the mangy, sclerotic soft machines that want men with guns to shoot young people over plant leaves and confiscate their property. 

The pro-slavery and protectionist parties that dragged us into a civil war over tariff policies are still in business. Indeed, the Communist Manifesto, written even as they girded for violence, is still a thing to a huge dictatorship that “accidentally” poisons the planet with germ warfare weapons from time to time. The communist party is over 170 years old, and the Dems and GOP even older. 

Communist dictatorships collapsed in the 1990s, but were not replaced by libertarian societies. Instead, there was a reversion to superstitious mercantilist mixed economies featuring less chattel slavery and colonial rule, but otherwise fairly authoritarian. The media and academia are so heavily infiltrated that it is impossible today to find a chart showing how the fraction of humanity under communist rule has varied in recent decades. Go ahead, try it, and get back to me if you do. 

spoiling for a fight

The number of libertarian voters struggling to replace kleptocracy machine candidates over time is easy to find. Ways are found to keep them out of office, but even that is breaking down under the increase in libertarian voter support. Yet before 1972 there was total hopelessness. War enslaved men into involuntary combat, and prohibitionism brought wars and banking collapses.

Money deposited with banks and brokerages is low-hanging fruit to looter governments. When seized on some pretext, owners of unseized money withdraw it from the fractional-reserve banking system. The economy collapses, communism and looting in general increase, and the media are charged with explaining the whole thing as the result of “too much” freedom or “not enough” coercive regulation–which amounts to the same thing. 

After the Nixon Anti-Libertarian Law passed, news media understood that pretending the crashes had nothing to do with hatchet-wielding Treasury, tax and prohibition agents was a lucrative source of cash. And so it is today. Yet every individual can make a huge difference by the simple act of casting a vote for Libertarian freedom and against the senile politicians of the GOP and Dem soft machines.

Brazilian Sci-fi from 1926 featuring the usual beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)

Three dollars on Amazon Kindle

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Brazilian blog

 

Minneapolis, July 1934

Communist rioters = ANTIFA

Antifa 1934; see original (link)

The Tuscaloosa News p. 1 STATE’S TROOPS PATROL STREETS IN MINNEAPOLIS–City Placed under Military Rule as Governor Fears Further Disorders–CITIZENS UNAFFECTED BY CONTROL FOR MOST PART–Radicals Again Blamed for Strike as New Peace Plan is Drafted— MINNEAPOLIS, July 27 (AP) Employers rejected the suggestion that they can reconsider the refusal of peace terms advanced by federal mediators in the truck drivers strike as federal authorities turned inquisitive eyes on two suspected Communists linked by police with the strike. 


MINNEAPOLIS, July 27 (AP) Concentration of National Guard troops in downtown Minneapolis because of the truck drivers’ strike, was increased by the moving in of an especially trained “shock” troop Battalion today.

  Quietness pervaded the city as the Third Battalion of the 206th Infantry entered the downtown district with a heavy complement of arms, including gas guns, field machine guns, and automatic rifles. The men, most of them veterans with war experience were specially trained in dispersing crowds.

  Military rule of the city, decreed yesterday by Gov. Floyd B Olson, this morning brought guardsmen to every corner of the heart of the downtown district. They acted on instructions to prevent parking within a 76-block area except to discharge passengers, and to forbid the gathering of crowds. They wore steel helmets and carried rifles with fixed bayonets.
 

1200 in City


  The total strength of the guard within the city approximated 1200. Some 2800 more men still remain at city limits, ready for call. Whether this reserve force would be demobilized and sent home, depended on developments in the next few days. Sixty-eight persons were injured, most of them wounded and one fatally, by police shotguns a week ago today when pickets attempted to halt a loaded truck.
Armed guardsmen patrolled the downtown district as federal mediators, the Rev. Francis Haas and E.H. Dunnigan, prepared a new peace plan they expected to complete today and the employers’ advisory committee again publicly blamed Communists for the strike. All efforts to settle the controversy so far have failed.


Citizens Not Affected


  For the most part, citizens were unaffected by control of the National Guard. Striking drivers, however, were forbidden to congregate out-of-doors in large numbers without written consent of Adjutant General E.A. Walsh. This order also applied to all gatherings of 100 persons or more.

  Employers were unable to move commercial vehicles, save trucks bearing necessities, without official permits from the military. Trucks that did not move today, plied the streets without armed police convoys for the first time in almost a week.
  Deliveries of breadstuffs, milk, ice, beer, gasoline were unhampered by guardsmen. This did not (Continued on Page 2)LINK

STATE’S TROOPS PATROL STREETS – (Continued from Page 1)
include deliveries of pie, cake and pastry, for which permits were required. Automobile parking in the downtown area was forbidden from 5 AM today until termination of the military rule.

  A few hours before the troops got underway, both sides failed to agree on peace terms promulgated by the federal mediators. After the military took control, the employer’s advisory committee issued a public statement condemning communism.


Communist Boast


  Quoting “the Militant,” organ of the Communist League of America, as boasting “our comrades played a leading role in the preparation and conduct of the great strike in Minneapolis which electrified the entire labor movement,” the employers concluded:

   “Communists are daily throwing additional Minneapolis workers out of employment by obstructing delivery of supplies. Communists are defying civil authorities. The strike in Minneapolis is not a strike of union labor for redress of any wrongs. It is a Communist uprising aimed at gaining control of our government by force – using labor organizations as the means. (…) Compare with today (link)

FRANKLIN D. ROOSEVELT had inherited the Banking Panics and Great Depression from Herbert Hoover’s enforcement of the March, 1929 Increased Penalties Act.(link) Like the Harding crash of 1920, that larger economic trainwreck caused citizens to line up to join the Communist party–its membership growing by a factor of 9 from 1929 to 1939.(link)  

Prohibition Crashes increase Communism

Communist membership 1934 prohibition crash hockey stick (link) Cf National Membership by Year

Meanwhile in Germany, where the Herbert Hoover’s 1931 Moratorium on Brains made it possible for National Socialism to win elections, rearm Germany and meddle in European politics…

Christian Socialists thick as thieves

Just like Nixon helped the Kleptocracy with the 1971 Anti-Libertarian Law–only it backfired…

Front page of same newspaper: HEIMWEHR WORKS FRANTICALLY FOR DEFENSE OF CITY – Anarchy Prevails over Whole Sections of Country; Battles Rage – SOLDIERS DRAWN AROUND GOVERNMENT BUILDINGS – 500 Men Believed Killed in Fighting; Nazis Attempt Drive from Bavaria – BELGRADE, Yugoslavia, July 27 (AP). An Unconfirmed Report That Italian Troops Have Already Crossed the Austrian Border near Villach caused grave concern in government circles tonight. (…) 

Strange how History rhymes, no? (link)

WINNING!

Libertarian vote share hockey stick, 2016…

Brazilian Sci-fi from 1926 featuring the usual beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)

Three dollars on Amazon Kindle

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Brazilian blog

Economic Recovery, 1923

Prohibition, ergo Crash

Beer precursor crop crushed by prohibition, then relieved by nullification

There were two significant components to the economic recovery of 1923. One was nullification of prohibition law enforcement, when dry killers learned it was better to accept bribes than take return fire. The increase in U.S. hop production is proof of increased demand for the precursor plant buds used in brewing Beelzebub’s brewski. Continue reading

ANcommunism 1924

Excluding European Looters

ANcommunists before the LP.org

After the 3-year Depression presaged by the first Prohibition Crash of 1920, Congress reacted to the sudden increase in looter anarchist partisans with the 1924 Immigration Act. Here’s how it worked. 

Encouraged by confiscation, fines, asset forfeiture and cruel prison terms imposed on miscreants not shot on sight, religious fanatics turned the force of law against Sunday baseball. They blacklisted merchandise and made a crime–not of violence–but of trade and production.** America then was (thanks to our oilfields) a mystical satrapy more like Saudi Arabia than Iran.(link)

But in a fractional reserve banking system where securities are sold on credit backed by the value of the stock shares, confiscations, fines and asset forfeiture cause depositors to remove money from banks and sell off their stocks. The money supply contracts sharply and a liquidity crunch generates a wave of bankruptcies. Depression results and voters rightly conclude they’ve been had.(link)

This happened in 1907, 1914, 1920, 1929, 1987 and 2008. The mechanism is described in Friedman’s “Free to Choose.” When these events of 1920 and 1929 impoverished the nation, there was no opposition Libertarian Party to turn to. Voters turned away from the failed Kleptocracy and canvassed for communists operating under several different names. Communist ranks increased both times.(link

Prohibition Crashes increase Looters

Prohibition and eugenic lead to poverty, communism,  fascism and war

The Kleptocracy dropped the ball, angry voters went elsewhere and communist membership doubled in the 1920-23 Depression. Communist membership fell when the dry laws were suborned and prosperity returned. But the 1929 Increased Penalties Act crashes caused communist numbers to double by 1932 and increase to five times the 1929 figure by 1937. With still no Libertarian Party to turn to, economic blight brought racial collectivist Christian National Socialists out of the woodwork in the US, Europe and Latin America. Another World War followed. That all changed after 1972.(link

After George Bush Jr orchestrated the asset-forfeiture Crash of 1980, seizing bank accounts and homes containing a potted hemp plant, the economy went to hell and ku-klux christianofascism suffered a telling blow. After twice failing to elect mystics, God’s Own Prohibitionists hired a trained persuader who was assisted to power by backlash against Global Warmunist pseudoscientists and anti-industrial doomcriers.

Gary Johnson running as a quasi-Republican girl-bullier in 2012 doubled our vote share thanks to the search for outside parties. But when Johnson recognized the individual rights the LP defended for women in 1972, our take went up 328% to 4.5 million votes in the federal elections and another 8 million or so in more important down-ballot elections.(link) The Libertarian Party is growing 80% per year and all the looter parties–communist and fascist alike–are losing members.

Once voters understand how government agent bank robbers and home-confiscators wreck the economy and attract coercive altruism, we stand to add another 8 million votes in general elections for 36 million overall. That kind of spoiler vote clout could repeal the 16th Amendment and free individuals of the IRS. But if the current Libertarian Platform Committee adds idiotic voter-alienating planks, or a conspicuously insane street person or girl-bullying republican gets the nomination, all is lost.(link

** Ragnar to Hank on conditions of life in the People’s States, remember?

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Brazilian blog

How many Ethiopians does it take…

Q: How many Ethiopians does it take to infiltrate a political organization and turn it into a socialist collaborationism platform?

A: No true Ethiopian would help a murdering dictatorship bully the Chinese Islands of Hong Kong and Taiwan–much less infect the entire planet with shocking dereliction in the handling of bio-weapons. No true Chinaman would either. 

It takes only one initiation-of-force collaborationist to accept U.S. tax dollars while helping communism attack its peaceful Chinese neighbors, Taiwan and Hong Kong–and cover up communist dereliction in the handling of bio-weapons. It takes American tax dollars to sanction and empower slavers on such a dangerous and devastating scale. (link

The European National Socialist Union of course recognizes a comrade and ally in altruist aggression. The WHO has clogged its organization with Taiwan deniers, Hong Kong holocaust apologists, and carbon tax pseudoscientists of the looter persuasion. (link) Just as Europeans eagerly crouched to lick the blacking off of Hitler’s, then Stalin’s boots while welching on war loans, so they perform with Red dictators in attacks on Taiwan and Hong Kong–the real Chinas. Let the fake China take its turn at funding its own puppet–and the Ethiopian People’s Revolutionary Democratic Front as well. (link)

Solution: NOT A PENNY! Not a penny of money extorted from individual Americans via Communist Manifesto Plank 2 (in the guise of the 16th Amendment) needs to go to propagandists for totalitarian bullies. In the 2016 election campaign the soi disant “Socialist Action” platform demanded “Not a penny for war!” (link) What they meant was not a penny for the initiation of force, for that is the root of all wars. (link)

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Brazilian blog

Feeling the Bern?

Poor dissolute uncovered wretches

Bernie proposed to stop shooting blacks

Republicans cannot imagine why young people prefer plants to gin, and prefer not to get robbed and shot by police over plant leaves. The only thing positive about their God’s Own Prohibitionist’ fascist platform is its refusal–so far–to have the police arrest people for generating electric power. When the Bush executive orders resulted in not-really-christianofascist asset forfeiture orgies that wrecked the economy as in 1929-33 and 1987-92, no Republican had the honesty to admit the cause of the collapse in mortgage-backed derivatives. The cause was fanatical prohibitionist asset forfeiture looting.

Here is a video of some of the things that are wrong with Bernie’s not-really-communism…

 

No, it is not reason enough to help religious conservatives again consolidate power and again destroy the economy through prohibitionist asset forfeiture looting. But it is bad. Find out more about why voting Libertarian makes economic sense…

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Brazilian blog

1988 Great Depression, 1929 Remake

Crash? More Prohibition!

Denial that prohibition caused ANOTHER Crash!

Republicans and their Democratic abettors pretended the 1920-22 Crash and Depression were happenstancenothing whatsoever to do with a Constitutional Amendment ending the freedom of trade and production. Those closest to the public–smugglers and bootleggers–simply ignored the dry laws, and paid cops, agents, prosecutors, inspectors and judges to help them ignore them. Freedom from coercion was bought and sold like any other commodity in a mixed-economy market.

Realists understood perfectly that coercive meddling had precipitated the Crash and plunged the nation into a Depression at the onset of Constitutional Prohibition. And sure enough, nullification of the dry looters’ laws enabled the economy to recover in fairly short order. But God’s Own Prohibitionists were far from pleased. The Great Unwashed was treating them with the sort of irreverence Andrew Jackson had displayed toward the Supreme Court’s Chief Justice: “Now let’s see him enforce it.”

Methodist White Terror & Kristallnacht for boozers

Goodbye Weimar, hello Third Reich!

Battalions of brutes with service pistols and political will could, they imagined, secure “real” prohibition enforcement. Sheer murderous mobilization had, after all, served to Hooverize and throttle the Accursed Hun in 1918, had it not? So the Jones Five and Ten Law was handed to Herbert Hoover to wield as bludgeon, bayonet and blackjack. Former prosecutor Willebrandt published the complete arsenal of government weaponization in a book-length column in August and September in some 2 dozen papers, and the economy went from recovering to ruined in 12 weeks.

Suddenly, amid the wreckage of the Crash, Senator Jones Law Jones–the very incarnation of the Methodist White Terror–was running the G.O.P.  Senator Robinson, remanded to the Sahara of the Bozarts, was replaced at the Dem helm by impecunious-immigrant-turned-gold-magnate Walsh. Walsh was father of Evalyn “Hope Diamond” Walsh McLean, a hard-drinking morphine addict once best friends with the Late President Warren Harding, and married to Edward McLean, newspaper magnate nearly arrested for lying to protect a former cabinet officer in the Teapot Dome.

Events in 1987 followed the same pattern. Mystical prohibitionism ramped up until the economy crashed in 1987, then retrenched with increasing fanaticism until voters had no choice but to throw the bastards out.

Same as 1930 reaction!

Prohibition kills economy; government adds MORE prohibition! (link)

The article says:

WASHINGTON (AP) – faced with a revolt by conservatives, congressional leaders attached anti-obscenity provisions to a compromise drug bill so the measure can pass and the 100th Congress can go home.
A weary House Speaker Jim Wright predicted Thursday night that both houses would approve the leaders’ “final agreement” on the drug bill today, but cautioned that the obscenity language could not be “nailed down” until lawmakers reviewed it. The bill is the major legislation keeping Congress in session.
After marathon meetings by rank-and-file negotiators, Wright along with the majority and minority leaders of both houses – gathered to tackle the unresolved issues Thursday night.
The thorniest among them proved to be Senate-passed language to give the federal government broad new powers to combat obscenity.
Earlier in the day, rank-and-file lawmakers stripped the language from the drug bill after liberals insisted the government’s powers would be too broad.
“We were threatened with a revolt” by conservatives, said right, who admitted he began envisioning an embarrassing floor fight that would destroy his effort to unite liberals and conservatives, Democrats and Republicans, behind the bill that could help all incumbents.
A coalition of conservative groups began an intense last-ditch telephone campaign to win inclusion of the anti-obscenity provisions, said Diane quarter main, legislative affairs director of the Liberty Federation, formerly the Moral Majority.
The bill – which would authorize some $2.5 billion in new anti-drug money, is an ambitious attempt to deal with all aspects of the drug problem, including law enforcement, treatment, rehabilitation, education and help for authorities in drug-producing countries.
New initiatives would include up to $10,000 in civil fines for those caught with personal use amounts of drugs; a federal death penalty for killers in drug -related crimes; and denial of some federal benefits to convicted drug offenders, including users.
A number of lawmakers cautioned the drug bill would be meaningless without new financing, and the House Appropriations Committee took quick action Thursday.
The panel approved $500 million in new spending for the drug bill, an amount that would pay for barely a third of the estimated $1.4 billion first-year costs of the legislation. The final cost is expected to be about $2.5 billion if the multi-year measure is fully financed. The $500 million includes: $242 million for treatment, prevention and education; $179 million for new agents and equipment for federal law enforcement agencies; $42 million for the federal courts; $25 million for the Coast Guard; and the rest for programs of the departments of State and agriculture, and the FDA.
A combined bill to combat adult obscenity and child pornography had passed the Senate 97-0 previously, and was added to the drug bill when the House refused to take action. The child pornography language was approved by the drug bill negotiators.
The obscenity language passed by the Senate would allow the federal government to seize property used to commit or promote and obscenity offense; and authorize the government to seek civil fines against those producing, transporting or receiving obscene materials. Wright said the leadership agreed to target only major dealers or producers of obscene materials who were “knowingly engaged over a long period of time.” He said the language was not aimed at the bookstore owner who may have a single volume judged to be obscene.
He called the language “constitutionally respectable and acceptable.”
Lawmakers opted to accept portions of House and Senate language on a program to deny federal benefits to convicted drug offenders, including those convicted of possession.
Benefits such as federal public housing, grants, contracts, loans, mortgage guarantees, and some forms of veterans’ aid could be lost to drug offenders. Judges would have discretion, however, on whether to impose the penalty after conviction.
the president would submit a report on the program to Congress next May, allowing lawmakers to reconsider the proposal. No one could be denied benefits before next September. Social Security, Medicare, welfare benefits and some other veterans’ aid programs would be exempted even after September.
Negotiators agreed that if someone is killed during a federal drug felony, the federal death penalty could apply if: the killer was engaged in a continuing criminal enterprise; was trafficking in major amounts of cocaine, heroin or other drugs; intentionally gave an order that resulted in a killing; or killed a police officer.
In other key decisions, negotiators:
– agreed to create a “drug czar” in the president’s Cabinet, to coordinate national drug policy. The official would develop plans for every phase of the drug war, share with relevant Cabinet heads the authority to transfer personnel, and have the right to object when he believes drug funding is inadequate or misdirected.
Dropped a house provision that would’ve permitted introduction in federal court of evidence seized illegally, but in “good faith,” even in warrantless searches.
Accepted Senate language on child pornography, including a 20-year-to-life prison term for anyone convicted of facilitating use of a child for producing sexually explicit materials.
Gave the Justice Department nine months to develop a system for gun dealers to check whether purchasers are convicted felons.
Agreed that records of those punished by civil fines would be expunged automatically after a period of time.
– resolved that states initially would have to contribute 25% of the cost of federal grants for anti-drug crime programs. After the first year of the four-your program, the state portion would go to 50%. [Enter Bush Junior faith-based asset forfeiture Executive Order, which by 2008 would again wreck the economy]
– agreed to restore to US attorneys the ability to prosecute corrupt public officials under the theory that they deprived Americans of honest government services. A Supreme Court ruling in June 1987 had prevented such prosecutions.
– Agreed to finance drug education programs for private employees, low income pregnant women, gang members, students, and dropouts.
– Decided to drop proposals for random drug testing of transportation workers.

Get the complete story in Prohibition and The Crash on Amazon Kindle in two languages. After this you’ll be able to explain to economists exactly how fanaticism and loss of freedom wrecked the U.S. economy.

ProhicrashAmazon

I also produce books and articles in Portuguese, using Brazilian historical sources at http://www.expatriotas.blogspot.com or amigra.us

 

Start of the 1929 Crash

The U.S. stock market began following the fall of the German and French stock markets during the first few days of September, 1929. Above is a typical story about a small still–the large, continuous stills producing thousands of gallons a day never made it into the papers. The story (link) hints that the agent on vacation was turning a blind eye to liquor production, and that his officious replacement was cracking down with faith-based determination and lusty asset forfeiture, but that the coast will again be clear next Wednesday.

RAIDERS SEIZE MOONSHINE STILL—Mash and Finished Product Found at Pawtucket. A Pawtucket raid in which federal prohibition agents attached to the Providence office, under direction of Chief Raiding Officer Michael A O’Brien, today seized a 100 gallon moonshine still and large quantities of mash and finished product is the 22nd seizure whih the office has effected since John W Morill, administrator in charge of the office, left on his vacation two weeks ago.
As a result of the raids, a report of which is being tabulated by Carl A Nelson, drug store inspector, acting as administrator in the absence of Mr Morrill, 21 Rhode Island men have been taken into custody and arraigned before United States Commissioners on charges of violating the prohibition act.
The number of stills and beer plants uncovered during the raids had not been tabulated by Mr Nelson to-day, but the acting administrator indicated that they would far exceed the number seized by the local office over a similar period a year ago, when, he said to-day, seizures totalled six.
No defendant was found on the raid conducted today, on a two-story dwelling house at the junction of Yale and Notre Dame avenues, Pawtucket, where the agents claim to have seized 47 barrels of moonshine mash and a large quantity of alleged moonshine whiskey.
Four stills uncovered last night by the agents in cellars of two houses on Division Street, Central Falls, were about the filthiest in the experience of agents attached to the local force, it was indicated to-day, the report stating  that quarters where the stills were uncovered were infested with rats and other vermin.
Mr Morrill, who is spending his vacation with members of his family in Maine, is expected to resume his duties in this city next Tuesday. Mr Nelson will leave on his annual leave of two weeks the following day. (Providence, RI Evening Tribune 31 AUG1929  1)

On the same page (link) is a report on the difficulties experienced in collecting war reparations payments from Germany. After Austria and Germany attacked other narcotics-producing nations in 1914 then lost in 1918, every country invaded was counting on German reparations payments provided under the Treaty of Versailles. With that money they then paid a little toward the loans gotten from Uncle Sam while being throttled by the Accursed Hun. Throttler replaced throttlee in the Versailles treaty, yet Germany, now fanatically inspired by christian National Socialism, spent its drug income on political parades and armaments, while demanding everyone else disarm.

Why not delve into what caused the 1929 Crash? Prohibition and The Crash–Cause and Effect in 1929 does exactly that, matching economic theory and newspaper accounts against stock market reactions and competing theories. It is live on Amazon Kindle for the price of a pint.

Prohibition and The Crash, on Amazon Kindle in 2 languages

My other-language blog is amigra.us

Prohibition and Finance

How many dollars flowed through the illegal liquor, beer & wine business in 1929? Historians assure us that liquor consumption did decrease by as much as 40% under the dry law. Supposing that to be true we could use 60% of the ASL guesstimate as a proxy for the volume of liquids. But making a thing illegal is one of the most effective ways to raise its price. Marijuana prices have fallen by roughly 2 orders of magnitude after decriminalization in some areas, but beer doesn’t grow on bushes.

My estimate after 20 years of gathering figures is that beverages became four times as expensive under prohibition. Applying that multiple to 60% of the guesstimated 1914 liquor total yields 4.2 billion gold dollars. But the U.S. population had grown dramatically between the night of January 16, 1920 and the unleashing of Herbert Hoover and the 5&10 law upon the corn sugar and yeast industry that produced at least 80% and possibly as much as 95% of all the illegal beverage consumed occurred in 1929. Adding the effect of the 14% population growth that decade gives $4.8 billion. So how does that dollar amount compare to the size of the U.S. economy of 1929? (Hint: it was more than the Federal budget–about 5% of GNP). The Wickersham Commission, appointed to downplay the total, came up with a slightly smaller figure. Clark Warburton, the economist who coined “Gross National Product,” came up with a slightly higher figure.

That’s right. Gangland trafficpreneurs had more income from liquor alone than the Federal Government got from corporate and individual income taxes, customs tariffs and the squeeze put on States. God fights on the side with the biggest budget, so of course repeal won, thanks to the Liberal Party repeal plank.

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Live on Amazon Kindle in 2 languages

Brazilian blog

Economic Collapse, July 1930

Prohibition caused Depression

Chicago Tribune 17NOV1930

The stock market crash of 1929 marked the realization that prohibition laws would soon destroy the US economy and banking system. By mid-1930, financial collapse was so well underway that the old prohibition enforcement districts were redrawn to conform closely to existing Federal Reserve districts. This change took effect on July 1, 1930, the month Cook County Assessor Gene G. Oliver was convicted of tax evasion and sentenced to 18 months in prison and fined $12,500 by Judge Woodward in Chicago.

Here is a breakdown of the districts.

The transfer of the prohibition enforcement activity from the Treasury Department to the Department of Justice under the Williamson Act took place on July 1, 1930, under the Bureau of Industrial Alcohol in the Treasury Department, retained the duty of issuing permits for the manufacture and use of alcohol and other intoxicating liquor for non-beverage purposes, and of supervising the activities of the permitees.  The 27 prohibition districts hitherto existing were rearranged into 12 new districts, with boundaries corresponding in some measure with the 10 judicial circuits.  (Misdirection! The new prohibition districts were a nearly perfect fit to the Federal Reserve Districts–tr)

1. Boston: Maine, N. Hampshire, Vermont, Massachusetts, R. Island, Connecticut
2. New York: New York State and Porto Rico
3. Philadelphia: New Jersey; Pennsylvania, Delaware
4. Richmond: Maryland, Virginia, West Virginia, N. Carolina, South Carolina, DC.
5. New Orleans: Alabama, Georgia, Florida, Louisiana, Mississippi, Texas.
6. Cincinnati: Michigan, Ohio, Kentucky, Tennessee
7. Chicago: Illinois, Indiana, Wisconsin.
8. St. Paul: Minnesota, N. Dakota, S. Dakota, Iowa, Nebraska.
9. Kansas City: Arkansas, Kansas, Missouri, Oklahoma.
10. Denver: Arizona, Colorado, N. Mexico, Utah, Wyoming.
11. San Francisco: California, Nevada, Hawaii.
12. Seattle: Idaho, Montana, Oregon, Washington, Alaska.
Source: NY World Almanac 1931 p 36

That same day, the Bank of Winter Park, Florida, closed its doors. As prohibition asset-forfeiture confiscations continued, many other banks would close. The Liberal Party, formed in 1930, published a plank in 1931 calling for the repeal of blue laws and the Prohibition Amendment. The Democratic Party copied this plank in the summer of 1932–in the middle of a major banking panic–and went on to win the election in November, plus four more.

That is an advance demonstration of the law-changing clout of libertarian party spoiler votes. By the time Franklin D. Roosevelt was sworn in as president in March of 1933, nearly every bank in the nation had already closed its doors. After 1928, no Republican was elected until the Eisenhower-Nixon campaign brought German National Socialism to America.

ProhicrashAmazon

Prohibition and The Crash, on Amazon Kindle

If you are disappointed not to have learned this in school, buy a copy of Prohibition and The Crash in Amazon Kindle format. For the price of a pint, the free app lets you see month-by-month how the economy was crushed–on a cellphone.

simultaneous interpreting

Next time choose a financial and accounting translator who won’t overlook things and cause added disappointment.