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The War’s Impact. An Economy in Turmoil. After WWI, the government removed the controls it had placed on the economy during war time. People began spending more, causing businesses to increase prices, The result was inflation. Inflation Leads to Strikes.
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An Economy in Turmoil • After WWI, the government removed the controls it had placed on the economy during war time. • People began spending more, causing businesses to increase prices, • The result was inflation
Inflation Leads to Strikes • Many businesses raised wages during the war, but inflation took away most gains that workers had made. • Many wanted wage increase • During the war, the number of workers in unions increased. • So postwar unions were better organized, and more ready to organize strikes
Inflation Leads to Strikes • Business leader were determined to break unions, and the result was a large increase in strikes in 1919.
Seattle General Strike • Shipyard workers wanted wage increase and shorter hours • Soon others joined them and organized ageneral strike • The strike paralyzed the city for several days, yet it made no progress
Seattle General Strike • This worried many Americans because the general strike was a technique used by Communists and other radical groups in Europe
Boston Police Strike • 1919; 75% of Boston’s police force walked off the job. • Riots broke out, and Calvin Coolidge (governor of Massachusetts, was forced to send the National Guard to stop it. • When the workers returned, they fired
The Steel Strike • Workers went on strike against US Steel • Shorter hours, higher pay, union recognition • African Americans and Mexicans were hired as replacements; the strike failed and so did the union
Racial Unrest • After WWI, many veterans returned to US looking for work • African Americans who moved north during the war were also looking for jobs. • This cause racism and frustration, which led to violence.
The Red Scare • As strikes broke out, the fear that communists (Reds) would seize power led to a panic known as The Red Scare. • Several incidents supported this: • June 1919; 8 bombs in 8 cities exploded within minutes of each other. • Though no one was ever caught, most believed it was communists trying to destroy the American way of life.
The Palmer Raids • Attorney General A. Mitchell Palmer set up the General Intelligence Division (later known as the FBI). • He set up raids on several radical orgs. • Never found evidence of that pointed to any of them as the bombers. • He had many immigrants deported
The Palmer Raids • These raids violated many civil rights • Homes entered without search warrants • People jailed indefinitely (no contact with attorneys) • Palmers popularity, dwindled when he failed to find evidence of a revolution. • The Red Scare led to anti-immigrant feelings and a call for Congress to limit immigration
The End of Progressivism • In 1920, the Democrats ran James M. Cox and Franklin D. Roosevelt for the presidential election. • Ran on Progressive ideas • Warren G. Harding (Rep.) called for a “return to normalcy” • He wanted the US to return to simpler days before Progressive Era reforms
The End of Progressivism • Many voters agreed with Harding, and he won by a landslide