Gangsters, such as Al Capone, used Prohibition to increase their wealth and, consequently, crime. Bootlegging became popular among such gangsters and people paid huge amounts of money to purchase alcohol illegally. Additionally, the cost to enforce the Act was high and the topic of Prohibition became as popular among the public and government officials as abortion and environmental issues of today. Also, the fact the government could no longer impose a tax on alcohol (since it was smuggled into the United States), it lost out on millions of dollars worth of tax revenue.
Thus, growing crime, controversy and debates about the topic, and the government losing out on millions of dollars were factors that contributed to the repeal of the Act. It is also interesting to note that many social problems, such racketeering, an increased participation in the black market, and others, were attributed to Prohibition. This turns out to be ironic since the Prohibition Act was passed to solve many social problems and not create new ones. In the end, banning the sell and purchase of alcohol has not been as controversial in modern times as it was in the last half of the 19th and 20th centuries.
Source: http://en.wikipedia.org/wiki/Prohibition_in_the_United_States
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