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THE DOMESTIC IMPACT OF WORLD WAR I SOCIAL CHANGES ECONOMIC CHANGES African-American -Great Migration -Move into new jobs vacated by whites -Black soldiers fight in segregated units, come home w/ more pride, not willing to accept discrimination -Race riots in North as white soldiers come home to reclaim jobs & neighborhoods diversified by Great Migration Women -# in workforce increases (but minimally, b/c most actually had worked outside home even before war) -BUT, occupations diversify, do jobs that were previously done by men -more exposure to volunteer activities & work outside home -most actively support war effort as nurses, raising $ for victory bonds, etc. -suffrage movement helped b/c it seems hypocritical to fight for democracy abroad when women don't have it at home -Women get 19th amendment after war… demonstrated responsibility by supporting war effort Labor -Gompers & AFL cooperate w/ gov. & make "no strike" pledge during war -IWW, socialists, radicals take advantage of wartime labor shortage to go on strike… most are arrested/deported by gov., IWW destroyed by gov. -War Labor Board practices "binding arbitration" in strikes (workers and employers had to obey whatever decision the board made)… new role for fed. gov. -Wages & benefits rise due to labor shortage, but most companies try to rescind gains during post-war recession (1920-1921) -Intense strike activity immediately after the war including a "general strike" in Seattle & controversial & violent "Boston police strike -Gov. spending skyrockets -1/3 of increase paid for w/ increased taxes (Revenue Acts of 1916-1917) -deficit (2/3 of budget) paid for with victory/liberty bonds (loans) Foreign Trade -U.S. goes from net debtor to net lender -Economic power increases relative to Europe (U.S. profited off of arms sales before war & also no damage to U.S.) Gov.-Business Cooperation -"Cost-Plus" Program… Fed. gov. guaranteed profits to businesses engaged in war industries -No competitive bidding, most contracts go to largest corp.s (they were seen as most efficient) -War Industries Board regulated production & sale of goods… set prices, rationed certain goods, etc. (mixed success, coal shortage, weapons production did increase, but still short of demand) -Corporate profits increased dramatically during war years *For Liberals economic successes of war years seemed to suggest that Progressive ideas about gov. regulation & mixed economy worked… Fiscal conservatives were anxious to get back to "normalcy" in 1920s w/ return to laissez-faire Gross National Product -GNP (size of economy) rose 237% during war -Brief post-war recession 1920-1921as economy converts back to civilian production & soldiers flood labor market, increasing unemployment