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June 26, 2009

The law of unintended consequences

How is the following for an unintended consequence, when the police cracked down on liquor law and organized crime at the Stonewall Bar, they ended up unleashing the gay rights movement:

A prominent Stonewall myth holds that the riots were an uprising by the gay community against decades of oppression. This would be true if the “gay community” consisted of Stonewall patrons. The bar’s regulars, though, were mostly teenagers from Queens, Long Island and New Jersey, with a few young drag queens and homeless youths who squatted in abandoned tenements on the Lower East Side.
...
Another myth is that the police raid on the Stonewall was part of a broader crackdown on gay bars in the summer of 1969, a mayoral election year. In fact, the Stonewall operation was the work of a Police Department deputy inspector, Seymour Pine, and officers from the morals unit, and they carried it out without the knowledge of the officers of the local police precinct, whom they suspected of taking payoffs from the Stonewall and other Mafia-run gay bars in the Village.

Deputy Inspector Pine had two stated reasons for the raid: the Stonewall was selling liquor without a license, which it was, and it was being used by a Mafia blackmail ring that was setting up gay patrons who worked on Wall Street, which also seems likely.

The owner of the Stonewall, Tony Lauria, was reputed to be a front man for Matty Ianniello (known as “Matty the Horse”), a capo in the Genovese crime family who oversaw a string of clubs in the city. New York’s gay-bar scene at the time was a corrupt system apparently designed to benefit mobster owners, who served watered-down drinks at inflated prices, often made with ill-gotten liquor from truck hijackings.

It is interesting to think that without licensing requirements to serve alcohol, they might never have been a gay rights movement. The unintended consequences of public policies are so large that one could easily despair at any hope of improving them by design. Another vindication for Hayek.

Posted by OneEyedMan at June 26, 2009 9:20 AM

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