THE ROARING 20S 1920 1929
THE RED SCARE OF THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Native Americans seeking jobs
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Mexican Americans seeking jobs
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The return from war of about 4.5 nurses
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The return from war of about 4.5 million soldiers.
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Detailed explanation-1: -The U.S. economy had robust labor markets with high inflation after WWI. In 1920, the Federal Reserve Banks hiked their discount rates to tame inflation, and the U.S. economy entered a severe recession, now known as the Depression of 1920.
Detailed explanation-2: -Our involvement in the war soon changed that rate. American factories were retooled to produce goods to support the war effort and almost overnight the unemployment rate dropped to around 10%.
Detailed explanation-3: -Stock prices collapsed first, by the end of 1919. The downturn in wholesale prices came 6 months later. By the autumn of 1920 a severe industrial depression had developed. Factory employment dropped 30 percent from March 1920 to July 1921.
Detailed explanation-4: -The miserable wages of the proletariat, the high prices of goods driven up by cartels, tariffs and indirect taxes prevent domestic sales. Therefore, the need for foreign sales markets is constantly growing. The huge accumulation of capital resulting from capitalist exploitation demands profitable investment.