Insider Monkey

20 States that Consume the Most Alcohol per Capita

Sultan Khalid
10 min read

In This Article:

In this article, we are going to discuss the 20 states that consume the most alcohol per capita. You can skip our detailed analysis of the economic cost of excessive drinking, the effect of taxes on alcohol consumption, and the CSR initiatives by various alcohol firms dedicated to promoting responsible drinking, and go directly to 5 States that Consume the Most Alcohol per Capita. 

By the 1930s, it was clear that Prohibition had become a public policy failure. The 18th Amendment to the U.S. Constitution had done little to curb the sale, production, and consumption of intoxicating liquors. And while organized crime flourished, tax revenues withered. With the United States stuck in the throes of the Great Depression, money trumped morals, and the federal government turned to alcohol to quench its thirst for desperately needed tax money and put an estimated half-million Americans back to work.

In February 1933, Congress easily passed a proposed 21st Amendment that would repeal the 18th Amendment, which legalized national Prohibition. The end of Prohibition resulted in a financial windfall for the federal government, which collected more than $258 million in alcohol taxes in the first year after repeal. Those millions, which accounted for nearly 9% of the government’s tax revenue, helped to finance Roosevelt’s New Deal programs in the ensuing years.

The Economic Cost of Excessive Drinking: 

The top 10% of American drinkers, which equates to around 24 million people, consume an average of 74 alcoholic drinks each week. If you break that number out, that means they consume a little more than 10 drinks each day.

Excessive drinking costs the United States almost $250 billion in 2010 (Latest figures available by the CDC). The federal government picks up roughly $100 billion of the tab, largely through Medicare and Medicaid payments. The median cost per state was $3.5 billion. Several evidence-based strategies can help reduce excessive drinking, including increasing alcohol excise taxes, limiting alcohol outlet density, and commercial host liability. 

The Effect of Taxes on Alcohol Consumption: 

Over the last two decades, a growing number of economists have examined the impact of alcohol beverage taxes and prices on alcohol consumption and heavy drinking. Several of these studies have focused on high-risk populations, such as youth and young adults, including college students. 

This research, using a variety of different data and empirical approaches, has generally found that an increase in the prices of alcoholic beverages led to reductions in drinking, heavy drinking, and the consequences of alcohol use and abuse. These findings indicate that a rise in alcoholic-beverage taxes could be a highly effective option for reducing alcohol abuse and its consequences. 

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