Causes for the economic downturn during 1919 include:
The end of World War I: Factories that were kept at full operation during wartime, either shut down or drastically changed their offering. As there was a reduction in the demand for weaponry.
The rise of Labor Unions: These organizations became powerful during the time of the war. As there was a lack of labor force due to a great part of them departing for war. However, with the end of the war, there were many layoffs and the pressure from Labor Unions towards the government increased
Rise in Interest rates: This occurred as a response from the government to the inflation caused during World War I. This contributed to a deceleration of the economy.
