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Effectiveness Of Beer Keg Registration Law On Decreasing Underage Binge Drinking, Zana Beck

Economics

Since the prohibition act of 1919, alcohol has always had high economic costs and benefits. While it increases revenues for the Federal Government through taxation and company profits, there are, unfortunately, several costs that impact society. These costs, also known as negative externalities, include a variety of actions like alcohol related traffic accidents, increased crime, and excessive binge drinking. A negative externality is described as “a cost that is suffered by a third party as a result of an economic transaction,” in which the third party is indirectly affected (MaClean, 2013). In the case of alcohol, society is the third …