Cheddi Jagan returned from studies in the United States to a British Guiana in 1943 that was a cauldron of poverty. The report of the Moyne Commission, which investigated poverty in the region in the 1930s concluded that “for the laboring population, mere subsistence was increasingly problematic.” The report was so explosive that it was not published until 1945. It weighed heavily in subsequent developments. In 1946 Cheddi Jagan, Janet Jagan, Jocelyn Hubbard and Ashton Chase, the latter two of whom were active trade unionists, formed the Political Affairs Committee (PAC). In 1947 Cheddi Jagan fought and won a seat in the Legislative Council.
The cauldron of poverty was being stirred by decades of intensified industrial unrest, prompted by the new found strength of organised labour. The British Guiana Labour Union (BGLU) was the first to be registered in the British Empire in 1922. The Man Power Citizens Association (MPCA) was registered in 1937 and represented sugar workers. The Transport Workers Union (TWU) was established in 1938 and superseded the BGLU as the largest and most militant in the city. In 1947 bauxite workers went on strike. In 1948 the successful Teare Strike led by the TWU, stopped the trains and boats and closed down the country for two weeks – unprecedented in a colony. In 1949 the Enmore strike of sugar workers took place during which five sugar workers, who became known as the Enmore Martyrs, were shot and killed. This heightened labour activity was also a feature in the Caribbean region and was prompted by a decline in sugar prices on the world market which further exacerbated poverty.