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By the end of this section, you will be able to:
  • Identify the challenges that the United States faced following the conclusion of World War I
  • Explain Warren G. Harding’s landslide victory in the 1920 presidential election

As world leaders debated the terms of the peace, the American public faced its own challenges at the conclusion of the First World War. Several unrelated factors intersected to create a chaotic and difficult time, just as massive numbers of troops rapidly demobilized and came home. Racial tensions, a terrifying flu epidemic, anticommunist hysteria, and economic uncertainty all combined to leave many Americans wondering what, exactly, they had won in the war. Adding to these problems was the absence of President Wilson, who remained in Paris for six months, leaving the country leaderless. The result of these factors was that, rather than a celebratory transition from wartime to peace and prosperity, and ultimately the Jazz Age of the 1920s, 1919 was a tumultuous year that threatened to tear the country apart.

Disorder and fear in america

After the war ended, U.S. troops were demobilized and rapidly sent home. One unanticipated and unwanted effect of their return was the emergence of a new strain of influenza that medical professionals had never before encountered. Within months of the war’s end, over twenty million Americans fell ill from the flu ( [link] ). Eventually, 675,000 Americans died before the disease mysteriously ran its course in the spring of 1919. Worldwide, recent estimates suggest that 500 million people suffered from this flu strain, with as many as fifty million people dying. Throughout the United States, from the fall of 1918 to the spring of 1919, fear of the flu gripped the country. Americans avoided public gatherings, children wore surgical masks to school, and undertakers ran out of coffins and burial plots in cemeteries. Hysteria grew as well, and instead of welcoming soldiers home with a postwar celebration, people hunkered down and hoped to avoid contagion.

A photograph shows a massive hospital ward filled with flu victims.
The flu pandemic that came home with the returning troops swept through the United States, as evidenced by this overcrowded flu ward at Camp Funstun, Kansas, adding another trauma onto the recovering postwar psyche.

Another element that greatly influenced the challenges of immediate postwar life was economic upheaval. As discussed above, wartime production had led to steady inflation; the rising cost of living meant that few Americans could comfortably afford to live off their wages. When the government’s wartime control over the economy ended, businesses slowly recalibrated from the wartime production of guns and ships to the peacetime production of toasters and cars. Public demand quickly outpaced the slow production, leading to notable shortages of domestic goods. As a result, inflation skyrocketed in 1919. By the end of the year, the cost of living in the United States was nearly double what it had been in 1916. Workers, facing a shortage in wages to buy more expensive goods, and no longer bound by the no-strike pledge they made for the National War Labor Board, initiated a series of strikes for better hours and wages. In 1919 alone, more than four million workers participated in a total of nearly three thousand strikes: both records within all of American history.

Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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