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Was "long island iced tea" a pseudonym given during Prohibition, so the person ordering could claim that he didn't intend to order booze?
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You're confusing the Prohibition practice of actually serving whiskey in tea cups, and the customers ordering it as "tea", with a modern drink named for its resemblance to a glass of cold, sweet tea with lemon.
Speakeasy's didn't serve real tea, so there would have been no reason to append "Long Island" to "tea" at that point.
In any case, the drink described above, originally called simply "Iced Tea" (another blow to the Prohibition theory) was only invented in the 70s or 80s, and didn't pick up the "Long Island" until a few years later when bars outside the New York metro area learned the recipe and started serving it.
And a properly made "Iced Tea" does indeed taste like sweet tea with lemon. If the one's you're drnking don't, you're the victim of a bad bartender. (Lots of regional foods/drinks suffer this kind of problem. I've never had a "buffalo style" chicken wing that came close to tasting like the actual dish as served in Buffalo.)
Regards,
Joe