The USA exported weapons and food to Europe during the war.
The USA joined the Allied side in 1917
After the war, European countries whose industries had
been damaged bought American goods with the help of
American loans.
Cheap European Imports were seen as a threat
American businesses were afraid that the USA would
would be flooded with cheap european imports
Unemployment was higher in Europe so European
workers were willing to work for lower wages
Buisnessmen were worried American
consumers would start buying
European products rather than the
more expensive American ones
This means: Loss of American jobs,
Lower profits for US companies, Less
money in takes for the US government
Warren G Harding
Raised tariffs to protect US industry
Elected president in 1921.
May 1921: he introduced Emergency Tariff Act
The act increased the tariff rates on imported farm products
Tariffs are taxes on imported and exported goods.
In 1922, the Fordney-McCumber Tariff gave the president the power to raise and lower
the tariff rates
Harding used the Fordney-McCumber Tariff to raise duties
on both factory and farm goods.
He hoped to protect America from "unfair" European
competition
Immigration control was increased
Before ww1, America followed an 'Open Door' policy that allowed almost
anybody to move to the USA. Some Americans started demanding that this
'door' be closed.
The most powerful and wealthy cultural group in
America at this time were people with mainly British
ancestors - later known as White Anglo-Saxon
Protestants (WASPS).
1) Many WASP's believed that people
such as anarchists and communists
were coming into the USA and
undermining the American way of life
2) They were also alarmed at the
number of Asian, Catholic and Jewish
people who were entering the USA.
The WASPs had great influence in Congress (the American parliment). As a
consequence, President Harding decided to place strict limitations on immigration,
especially from Eastern and Southern Europe.
In 1921, Congress passed an act which introduced a quota system. Annual
immigration was reduced from over one million about 150,000 in 1929.