After World War I ended, American soldiers returned to the United States. When they came home, they faced economic issues. One issue was that they needed to find jobs. During the war, women and African Americans had begun to work some of the jobs that the men were doing before the war began. They also began to work in industries that produced materials for the war effort. After the war ended, many of those jobs were no longer necessary, as American industries converted their production back to peacetime production. Thus, the returning soldiers were competing with other people for the jobs that were available. This led to tensions between the returning soldiers and the African American workers, who also wanted jobs.
Another economic issue that developed because of the demobilization was that many strikes occurred. Because there was a surplus of workers, companies didn’t need to raise wages. There was a higher rate of inflation after World War I ended, as people wanted products that they couldn’t get during the war. As prices of products increased, workers wanted more pay. However, since there was an abundance of workers, businesses didn’t need to increase the wages that they were paying the workers.