How did the hunt for communist-associated artists in Hollywood begin?

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One of the reasons that the Red Scare focused so much on artists in Los Angeles is because they were considered trend-setters or opinion-makers. Amazingly, movies do impact perception and people look at what stars do. People also tend to think that stars are liberal.
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What's called the "Second Red Scare" took place around the years of WWII. Communism and socialism were popular political philosophies world-wide and seemed for a time to be viable alternatives to democratic capitalism. When spies were uncovered in the government and in American life, steps were taken to ensure that loyalty to the country was a public priority. 

In March 1947, President Harry S. Truman signed Executive Order 9835, creating the “Federal Employees Loyalty Program” establishing political-loyalty review boards who determined the “Americanism” of Federal Government employees, and recommended termination of those who had confessed to spying for the Soviet Union, as well as some suspected of being "Un-American". 

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