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The term stems from [prohibition]. When the bar tender ran out of hard alcohol, they would use a boot legged alcohol (generally grain alcohol) and cut it with a certain amount of water. The result was an alcohol that was very close to 80 proof... 86. The slang term came to be used when the bar ran out of alcohol they would call for the "86". Over the years the term has evolved to refer to [running out] of something. Although there are many theories about ladies drinks and [Empire state] buildings, this is historical slang term has been documented.
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