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2. Demobilization  Transition from wartime to peacetime Government was ill prepared for conversion Hundreds of factories closed Crop prices fell Unemployment skyrockets Soldiers?  Americans went on a spending spree with the money they saved during the war. Inflation and the value of the dollar shrank. Leads to a recession ○ 100,000 businesses went bankrupt. ○ Crime increased

3. Unions vs. Business  National War Labor Board  After the war Corporations reduced wages and paid less attention to employee safety.  American Federation of Labor – group of unions representing skilled workers.  IWW – saw socialism as the solution to workers’ problems. Goal was to put the working class in control of the machinery of production and distribution without regard to the capitalist masters.

4. Public Opinion Turns on the Unions  Middle – class Americans began to view unionism as a threat to their way of life.  Results: 1) Overall union membership declined in the 1920s 2) Failure of many strikes to achieve workers’ goals. 3) Exclusive politics of many unions refused or limited membership to unskilled employees, women, African Americans, and most immigrants.

5. Red Scare  Radicalism is the point of view favoring extreme change, especially in social or economic structures.  Communism called for public ownership of the means of productions. Economic theories of Karl Marx (German philosopher) Result would be a classless society in which all people share equally in the wealth produced by their labor.  Postwar fear of radicals became known as the Red Scare Palmer Raids 30 States will pass sedition laws, which made stirring up opposition to the government a crime.

6. Immigration  Increased immigration led to a resurgence of nativism.  Emergency Immigration Act of 1921 capped the number of people allowed into the country. Set up a quota system to limit the number of immigrants from each country. ○ Allowed only 375,000 immigrants into the U.S. ○ 3% of the country’s residents in the U.S. in 1910.  Immigration Act of 1924 reduced the number of immigrants to allowed to 164,000. Cut quotas to 2% of a country’s residents in the U.S. in 1890. Banned all immigration from Asia.  Revived the KKK. Revived the KKK

7. Racial and Religious Tensions  Asians Barred from becoming citizens and from owning land in several states. Banned marriage between whites and Asians  Blacks Returning Soldiers had high hopes that their service to the country would lessen prejudices. ○ Hard time finding jobs. ○ Race Riots ○ Back to Africa movements led by Marcus Garvey – 2 million followers Later convicted on mail fraud charges.  Jews Increase in Jewish Immigrants stirred up anti-Semitism Colleges limited the number of Jewish students they accepted Job Ads stated for Christians only.  Catholics Targets of religious prejudices