The early 20-century was a big chaos and had continuous fluctuation of economy in America, and this instability of American society led to several social issues such as unemployment and the growth of large communities of foreign peoples. With Theodore Roosevelt's regulation of the trusts in the beginning of the 20-century, American society seemed quite settled down for a while, but the government's power over the industrial economy was still limited that the progressivism of country was impossible. Starting of World War I in 1914 under Wilson's presidency even deepened the economy of American society, so as unemployment became an issue for the society, the nativism began to rise, and Congress started to restrict enormous amount of immigrants with the establishment of new laws. .
From 1900 to 1930 can be divided in two periods: 1900-1920 and 1920-1930. First part of early 20-century was very chaotic since the World War I began. Before the Great War, during Roosevelt's presidency, though, American economy was not able to achieve the progressivism despite his efforts to reform the national government. As the war began, America was slowly going into the economic depression period after temporary economic boom in 1915 and serious effect on economy after war. During this period of wartime, African-Americans from the rural South where the prejudice existed for blacks moved into the northern industrial cities, where they could possibly get their jobs in factories and have more freedom, which was Great Migration. In 1919, economy experienced postwar inflation and many industry workers started to loose their jobs, and in same year, as the American communist party began, to fight back against these radical groups, antiradicalism, which was the idea of "100 percent Americanism", raised, and it was called Red Scare. Economic recession, however, seemed to stop as 1920 began, and the second part of the early 20-century was opened with the rise of nativism, Red Scare.