03 Jun Question Question : Alcoholic consumption has been a long-term iss
Question
Question : Alcoholic consumption has been a long-term issue since the 19th century. In the Excessive US history, Prohibition (of alcohol) was a major law to prohibit the manufacture and sale of alcohol during 1919-1933. Before the law was created and enforced, prohibition was a major reform movement from the 1840s because drinking was on the rise after the American Revolution. To combat this, a number of societies were organized as part of a new Temperance movement which attempted to dissuade people from becoming intoxicated. Prohibition was finally instituted with ratification of the Eighteenth Amendment to the United States Constitution on January 16, 1919, which prohibited the “…manufacture, sale, or transportation of intoxicating liquors within, the importation thereof into, or the exportation there of from the United States…” Congress passed the “Volstead Act” on October 28, 1919, to enforce the law. However, the Repeal of Prohibition in the United States was accomplished with the passage of the Twenty-first Amendment to the United States Constitution on December 5, 1933, which was the end of Prohibition. By its terms, states were still allowed to set their own laws for the control of alcohol. Please answer the following questions based on your own economics intuition and the economics knowledge that you learned from class. (Max. 200 words for each)
a) Explain why excess alcoholic consumption was not only a personal issue but also a public health issue even in the late 19th and early 20th centuries.
b) Explain why people may make seemingly irrational decisions to consume excessive alcoholic drinks.
c) Provide the economics rationale why Prohibition as a government intervention was necessary to correct people’s seemingly irrational behavior (in this case, consuming excessive alcoholic drinks.)
d) Without reading further materials about the history, use your economics intuitions to analyze why this policy (i.e. Prohibition) failed at the end.
e) Propose another policy intervention to reduce excess alcoholic consumption as you were a government policy
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