Origin
One possible origin of the term is from the United States Navy. In the 1920s, "Happy Hour" was slang for a scheduled entertainment period on board a ship during which boxing and wrestling bouts took place; this was a valuable opportunity for sailors to relieve the stress accumulated during the long periods at sea.
The idea of drinking before dinner has its roots in the Prohibition era. When the 18th Amendment and the Volstead Act were passed banning alcohol consumption, citizens would host "cocktail hours", also known as "happy hours", at a speakeasy (an illegal drinking establishment) before eating at restaurants where alcohol could not be served. Cocktail lounges continued the trend of drinking before dinner.
"Happy hour" entered civilian use around 1960, especially after a Saturday Evening Post article on military life in 1959.
Read more about this topic: Happy Hour
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