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Friday the weekend is here so let's talk a little bit about beer America's beer industry it's a major milestone less than forty years ago there were.
Fewer than fifty breweries in the entire country.
Now there are more than 2300.
And brewers will tell you besides water hops and yeast the most important ingredients are low taxes and less regulation.
-- -- -- is author of the audacity of hops the history of America's craft beer revolution.
And is here to tell us about this amazing success story what happened to America's brewery industry that did it suddenly exploded it.
In terms of the number breweries.
Well two things happen beginning in 1976.
It was then during.
The Ford administration there was a big push by private industry to lower the excise tax fine.
Barrel of beer from nine dollars to seven dollar for smaller producers this was at a time when there were fewer as you said.
Fewer than fifty breweries in the United States so the excise tax was lowered from nine dollars to seven dollars per barrel it doesn't sound like -- -- -- that's actually.
More than 20%.
Okay so -- so cost of business goes now more than 20%.
Two years later -- President Carter signs into law the legalization of home brewing at the federal level.
Cost of commercial businesses lower.
And all these home brewers who were operating underground.
And you know trepidation about sharing information.
Or about importing material from Europe suddenly could.
I didn't realize that a that did that the prohibition laws that allowed you know home winemaking and so forth didn't apply to Pearson -- technically illegal like root beer at home and in this country back in the 197 at.
Absolutely right after repeal a 1933 home winemaking was legalized.
Home brewing was not for whatever reason.
The government did not really cracked down on home brewing there was always that fear that that could happen at any moment so it's sort of put a chill entrepreneurship.
So let's flash forward to today I mean I know there's a lot of the story we're condensing and maybe people run around by your book to read about it all but -- flash forward to today what has it has done for the economy in this country it is relaxation of regulation and taxation.
Yeah it's kind of amazing actually since 1970 and I -- -- this my book the audacity of hops.
We've gone from that that fewer than fifty breweries to more than 2700.
Now a lot of the home brewers became.
After 1978 they became the early commercial brewing superstars.
It caused explosion in both home brewing and beer tasting conventions the great American beer fest which is held in Denver every fall.
Is the largest beer tasting festival in the world.
And starter was something like 22 you know -- back in 1982 and now it's.
A ridiculous Malick -- they sell out 50000 tickets and half an hour while every state.
Has at least a couple of -- some like California new York and North Carolina Michigan have dozens.
Tens of millions in tax revenue a year.
Tens of thousands of jobs as you can imagine and some states in particular and some cities like New York Philadelphia and severance and store using his real.
-- using craft breezes and economic development engine basically -- by a proper becomes an -- buzz surrounding neighborhood.
All because of a two dollar a barrel cut in the right excise tax while -- to tell you regulation there.
-- -- the book is the audacity of hops.
-- word play there.
Tom thanks very much for joining us and Sprint --
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