Part 2 Economic Hardship in a Postwar Slump Families and friends, eager to move past the war, often expected veterans to resume their old lives as if nothing had changed. But the men had changed. Nightmares, sudden tempers, or haunting silence strained relationships. Divorce rates among veterans in the early 1920s were double the national average, a stark indicator of the domestic turmoil that followed the war. 5
The passage of the 18th Amendment in 1920, ushering in Prohibition, deepened the veterans’isolation. Saloons, once gathering places where soldiers could share stories over a drink, were shuttered. Some turned to illegal speakeasies or moonshine, risking arrest or addiction. Prohibition took away a space where these men could connect. For many, it pushed their struggles underground.” 6
The economic landscape was equally unforgiving. The U.S. plunged into a postwar recession from 1919 to 1921, as war industries scaled back and factories laid off workers. Veterans, many returning with physical or psychological wounds, faced fierce competition for scarce jobs. Those with disabilities—amputated limbs, gas-scarred lungs, or shell shock—were often deemed unemployable. 7
Vocational training programs, promised by the government to help veterans transition to civilian work, were a patchwork of good intentions and poor execution. Underfunded and poorly advertised, these programs often failed to reach rural veterans or those with severe disabilities. By 1921, unemployment among veterans was estimated at 20%, with some regions reporting even higher rates. The slogan “a land fit for heroes” rang hollow. These men had been promised a future, but many found themselves on the streets or reliant on charity. 8
The government’s response to these challenges was woefully inadequate. In 1921, Congress created the Veterans Bureau to streamline services like pensions, medical care, and insurance for the war’s 204,000 wounded and millions of returning soldiers. But the agency was plagued by inefficiency and corruption from the start. Its first director, Charles Forbes, was convicted in 1923 for embezzling funds and selling hospital supplies on the black market. Imagine a veteran with mustard gas injuries, struggling to breathe, waiting months for a pension check. Then he gets a letter saying his claim was denied for missing paperwork. That was the reality.” 9
The Bureau’s failures left veterans in limbo. A soldier with a shattered leg might receive a pension of $12 a month—barely enough for rent, let alone a livelihood. Hospitals were understaffed, and mental health care for those with shell shock was virtually nonexistent. Veterans’ organizations, particularly the American Legion, founded in 1919, stepped into the breach. The Legion established local posts where veterans could find camaraderie and advocated fiercely for better treatment. Their efforts led to the Adjusted Compensation Act of 1924, which promised veterans a bonus based on their service time. But there was a catch: the payments weren’t due until 1945. For men struggling to buy groceries in the 1920s, this deferred promise offered little relief. 10