After World War I, returning soldiers faced unemployment as jobs were taken by women and immigrants. At the same time, the cost of living doubled in the US. Anti-foreigner sentiment grew as nativism increased and the country embraced isolationism. The 1920s saw a Red Scare over fears of communism gaining a foothold in the US through the Communist party, leading to unjust Palmer Raids targeting immigrants. Racism was rampant as the resurgent Ku Klux Klan targeted Catholics, Jews, immigrants and African Americans. The quota system severely limited immigration, and Japanese immigrants faced discrimination through the Gentleman's Agreement. Frequent labor strikes were crushed as workers were labeled communists.