Its generally a mix of morality policing and statistical crime prevention.
Those “no-sale” hours for liquor are when most drunk driving takes place. Drunk people generally like having more booze to drink. So by stopping sales you remove the incentive for drunks to drive to the store when they run out at 2 am. Or buying more on the way home when the bar closes.
The morality policing is just people wanting it to not be allowed because they don’t think its right and you shouldn’t be allowed to because of it.
Edit: The example of drunk driving was not meant as it only reduces drunk driving and nothing else, it was just a convenient example. Yes, it is also shown to reduce other crimes.
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