Social developments in 1923

The deterioration of the state economy, the fall in salaries and heavy taxation, combined with issues such as the economic reinstatement of ex-servicemen (many of whom had served 10-12 years) and refugees, caused more social tension than there had ever been. The new demographic and economic data eclipsed older figures. The effective restriction of imports and migrant remittances, as well as the devaluation of the drachma, contributed to the introduction, on the part of the state, of a number of new reforms to be implemented later in the field of agriculture.
The need to increase revenues led to a wave of strikes with labour protests in the centre of the capital. The reaction of the government of Gonatas - suspending all labour legislation for six months - triggered an even bigger wave of strikes than the country had known since it came to power during the summer of 1923. Its escalation into an open social clash and the intervention of the army resulted in many dead and injured as well as arrests, consfiscations of property etc.