The Post-War & 1920s Loonomy
Directions: Please read about the post-World War 1 American economy. Answer the questions a
you read. Then, read and answer questions about the 1920s American economy. You will compare
and contrast these economies after reading, and then complete a creative ansignment.
The End of WWI: When the United States entered World War 1, the government made deals and
signed contracts with various businesses in order to produce the materiais neded during a time of
war. However, World War 1 ended in 1918- much sooner than the government and those businesses
first expected, and less than a year after American troops arrived. During America's involvement in
the war, the War Industries Board doubled steel production, and tripled agricultural exports. Now
that the war was over, many government-contracted businesses lost money.
1. Predict: What effect do you think these cancelled contracts had on the American economy?
The Post-War Economy: As a result of the abrupt end to the war, wartime factories closed their
doors. Crop prices fell as demand for agricultural goods decreased. Soldiers were suddenly out of
work, and general unemployment rates in the United States increased. At the same time, people wer
obviously excited that the war was over, and they spent money they had saved during the war. Th
influx of cash to the market created inflation, which meant the American dollar lost value. The
factors led to an economic recession from 1920-1921. During these years, crime also rose, especial
with the development of organized gangs as Prohibition took full effect.
2. What do you think was the most important cause of this post-war recession? Explain.
Post-War Labor. At the same time, the 8-hour workday that many industries enjoyed du
war due to government influence shifted back towards longer working hours now that the
over, Unions such as the American Federation of Labor (AFL) fought for increased wages a
working conditions, which is often called bread and butter unionism. Unfortunately, mo
including the AFL, excluded women, African Americans, and most minorities. The
Workers of the World (IWW) was a union that sought to spread socialism. Since Blacks
excluded from union membership, unions for African Americans such as the Broth
Sleeping Car Porters led by A. Philip Randolph also emerged. This union fought for th
Black railroad workers. Due to tendency of unions to use strikes as a bargaining tacti
large began to lose popularity during this time period. Corporations fought unions,
Court sometimes dealt crushing blows to union tactics, most strikes were unsuccessful
the goals of the unions, and therefore unions began to decline.
CMrs. P's Interactive Classroom 2019