The Brew Deal: How Beer Helped Battle the Great Depression

by Jason E. Taylor

Overview

During the final stages of Prohibition, the US government allowed the consumption and sale of “non-intoxicating” beer, which was at or below 3.2% alcohol-by-weight. Beer’s return—permitted with an eye toward job creation during the Great Depression—was one of President Franklin D. Roosevelt’s earliest New Deal policies. In this book, economic historian Jason E. Taylor takes readers through the rapid resurgence of American breweries and shows how beer helped spark a sharp recovery in the spring of 1933.

Taylor begins with stories of how the nation’s 1,400 breweries were decimated by the onset of Prohibition in 1920. He then turns to the frothy debates that led Congress to declare 3.2 beer “non-intoxicating,” and hence allowable under Prohibition. While April 7th is now celebrated as “National Beer Day,” the original April 7th—when legal beer returned after more than 13 years away—brought raucous scenes that make today’s Mardi Gras festivities seem tame by comparison.

The Brew Deal shares stories of breweries, people, politics, perseverance, and the various roles that 3.2 beer has played in the evolving American beer scene.

Product Details

ISBN-13:	9783031731327
Publisher:	Springer Nature Switzerland
Publication date:	12/02/2024
Edition description:	2025
Pages:	274
Product dimensions:	5.83(w) x 8.27(h) x 0.00(d)

About the Author

Jason E. Taylor is Jerry and Felicia Campbell Professor of Economics at Central Michigan University. Before joining CMU, he earned a bachelor’s degree in journalism from Ohio University and a PhD in economics from the University of Georgia. Taylor was Assistant Professor at the University of Virginia from 1998 to 2003. He served as Editor-in-Chief of Essays in Economic & Business History between 2012 and 2018. His research is focused on US economic history, industrial organization, and public policy. Taylor's work appears in The Wall Street Journal, Forbes, USA Today, The Journal of Economic History, The Journal of Law and Economics, Public Choice, Economica, The Journal of Industrial Economics, and more.

Table of Contents

What’s on Tap?.- 1: The end of a thirteen-year thirst.- 2: The brewery (mostly) vanishes.- 3: America struggles with intoxication—or at least its definition.- 4: A good time for beer.- 5: New Beer's Eve.- 6: Rising from the ashes.- 7: 3.2.1 Recovery.- 8: Financing the brewery revival of 1933.- 9: Was there a beer bubble (and pop)?.- 10: So, what ever happened to 3.2 beer?.- 11: Closing time.- 12: Epilogue: Last call for the brew deal.

What People are Saying About This

From the Publisher

“I shiver when I teach the history of prohibition of alcohol in the USA. Recent burgeoning neo-prohibitionist tendencies scare me. To understand the risks of the latter, we need to thoroughly understand the impacts of the former. This makes this brilliant book by Jason Taylor essential reading for all who care about the ongoing pleasures of drinking a beer and those who need to understand its critical role in a thriving society.” (Charles Bamforth, Distinguished Professor Emeritus at University of California, Davis; Senior Quality Advisor at Sierra Nevada Brewing Co.; and author of “In Praise of Beer”)

“Jason Taylor knows how to make economic history sing. At one level, ‘The Brew Deal’ is a story about FDR and the beer industry. But it is more: The book tells a tale of American resilience in battling the Great Depression. If you’ve got the time, Taylor’s got the book.” (Kenneth Elzinga, Professor of Economics, University of Virginia)

“Jason Taylor provides a marvelous narrative about a happy change during the Great Depression, the return of legal beer. In an entertaining and informative fashion, he covers the beer industry’s decline under Prohibition, the politics of repeal, the celebrations that followed, the financing and impact of the rapid reopening of breweries, and the long after-life of 3.2 beer.” (Price Fishback, Professor of Economics, University of Arizona)

“In ‘The Brew Deal,’ Jason Taylor turns an economist's eye to beer economies in the U.S. during and after Prohibition. The result is a detailed and often eye-opening history of a seemingly familiar period in beer's American history. Sheer delight for historians.” (Maureen Ogle, author of “Ambitious Brew”)

“Jason Taylor’s writing pulls you in while both informing and entertaining. The book will be a delight to read whether you are a casual history buff or professional historian. Enjoy the journey while consuming a 3.2 beer.” (Darrell Smith, Executive Director, American Breweriana Association)

“Taylor provides a richly detailed account of the wide range of steps breweries took in the months and years leading up to and following the return of legal beer in April 1933. Anyone interested in the history of beer and brewing in America and in the labyrinthinely (almost humorously) complex set of state and local laws that emerged in post-Prohibition America will want to buy this book.” (Martin Stack, Deputy Chief Executive Officer, The Beeronomics Society and Professor of Management, Rockhurst University)

“It’s rare that a book about events from a century ago feels so fresh and timely. This gripping scholarship is a joy for readers. It also provides important insights into the politics and regulation of alcoholic beverages today.” (Bart Watson, VP of Strategy & Chief Economist, Brewers Association)

Editorial Reviews

This book by Jason Taylor of Central Michigan University outlines the history of prohibition in the US, beginning with its origins in the restrictions during World War I. ... Covering everything from attempts to make money from “near beer” to the lingering persistence of restrictions in some parts of the US, it’s well worth tagging along for this pacy tour through America’s failed attempt to go dry.” (MoneyWeek, March 14, 2025)

From the Publisher