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Economy Suffered After WW1• Government had no plan for the
transition back to peace time• Government contracts for war
materials ended suddenly• Unemployment grew• 4 million soldiers were
demobilized (“demobbed”)• Inflation occurred because
Americans suddenly spent wartime savings when war ended
• Many farmers lost their farms; many businesses went bankrupt
Labor Struggles• During WW1, the National War
Labor Board had settled arguments between companies and workers to keep factories working
• Workers had received higher wages
• After war, wages fell; workers went on strike (1 in 10 workers struck sometime in 1919. Seattle was most famous.)
• Unions lost power – Middle-class Americans withdrew
support, – Court cases removed wage supports– Unions were not united (especially for
women and Blacks)
Radical Groups• Success of Russian Revolution
– Gave hope to radical American socialists and communists
– Frightened middle-class Americans
• 1919: 34 bombs discovered by post office, addressed to industrialists and politicians
• “Red Scare” led to “Palmer Raids” when Attorney General Palmer raided homes of radicals, looking for weapons
• Foreign suspects were deported without trial
• Americans seemed willing to give up civil rights during this time of fear
Immigration after WW1• Immigration resumed its pre-WW1
levels• “Nativists” feared the lost of
“American” culture due to immigration
• Unemployed feared competing for jobs with immigrants
• Government passed the Emergency Immigration Act of 1921 and another in 1924– Capped immigration– Set “Quotas” for each country– Banned all immigration from Asia
• Fear, dislike, hatred of immigrants rose to high level
• American Blacks, Asians, Jews, Catholics faced prejudice too
KKK Resurgence• D.W. Griffith produced movie The
Birth of a Nation which extolled the Ku Klux Klan
• National membership drive and fund raising increased membership and enriched founders
• Parades, attacks, even murders took place across country
• Provided sense of belonging to “nativist” Americans threatened by culture changing due to immigration and modernization
• Collapsed after publicity over leader David Stephenson whose secretary committed suicide after he raped her