1. The Impact of WWI

2. Economy in Turmoil
Although the soldiers of WWI returned as heroes to their homes, they also returned to large unemployment
Government ended controls over the economy, so businesses raised the prices of goods that they had been forced to keep down during the war
Result: Rapid inflation
Cost of living was greatly increased

3. Inflation Leads to Strikes
Workers wanted wages raised to keep up with inflation, but companies hesitated because their costs of operation were also increasing
Seattle General Strike  35,000 shipyard workers walked off the job demanding higher pay and shorter hours
General strike  involves all workers in a community, not just workers in the particular industry
60,000 workers stopped working, which paralyzed the city for five days

4. Inflation Leads to Strikes
Boston Police Strike  75% of the police forced walked off the job
Rioting and looting began and the governor, Calvin Coolidge, called in the National Guard
When the striking workers tried to return to work, they were fired and replaced by a new police force
Coolidge: “There is no right to strike against the public safety by anyone, anywhere, anytime”  Gained widespread support from the American public

5. Inflation Leads to Strikes
Steel Strike  350,000 steel workers went on strike for higher wages, shorter hours, and recognition of their union
Elbert H. Gary, head of U.S. Steel refused to acknowledge the strikers
Used anti-immigrant feelings to divide the workers as many were immigrants
Companies hired Mexicans and African Americans to replace the workers
Strike collapsed in 1920, and the steel industry remained unorganized until 1941

6. Racial Unrest Many African Americans moved north to take factory jobs
Returning soldiers blamed African Americans for their inability to find work and affordable housing
Summer of 1919  25 race riots broke out across the nation
Angry whites burned shops and homes in an African American neighborhood in Longview, Texas
Gangs of African Americans and whites fought for four days in Washington DC
In Chicago, a group of young African American boys went to a whites-only beach and one was killed by a rock
Full-scale riot broke out in the city, lasted for almost two weeks
38 people were killed, 500 injured

10. Red Scare
Americans became fearful that communists were trying to take over the nation
Since 1800s, Americans had accused immigrants of importing radical socialist and communist ideas
Red Scare  nationwide panic of the spread of communism in America
April 1919, the US postal service intercepted 30 homemade bombs
June 1919, eight bombs in eight cities exploded within minutes of each other
One of the bombs destroyed the home of Attorney General A. Mitchell Palmer

11. The Palmer Raids
Palmer established a special division with the Justice Department  The General Intelligence Division
This division was headed by J. Edgar Hoover and eventually became the Federal Bureau of Investigation, or FBI
November 7, 1919  Palmer ordered a series of raids on the offices of the Union of Russian Workers in 12 cities
January, 1920  another set of raids on radical headquarters; resulted in 6,000 arrests
Nearly 600 people were deported as a result of the Palmer Raids

12. J. Edgar Hoover

13. The Palmer Raids
Palmer’s agents ignored the civil liberties of the suspects
However, Palmer was regarded as a national hero
Red Scare prompted people to link radical thoughts and ideas with immigrants; eventually led to Congress limiting immigration

14. The Election of 1920
A great sense of disillusionment resulted from economic problems, labor unrest, racial tension, and memories of World War I
Campaign of 1920:
James M. Cox  Progressive ideals
Wilson tried to convince Democrats to make about the Treaty of Versailles
Warren G. Harding  Republican candidate, called for a return to “normalcy”
Harding won by a landslide of over 7 million votes