With the Great Depression damaging Costa Rica's export market, tensions grew. The government of Teodoro Picado Michalski harshly repressed labor organizations. The Costa Rican Civil War in 1948 was fueled partly by discontent among works and labor unions. Picado had violently repressed a general strike in San José, greatly increasing tensions. When the Civil War broke out following Otilio Ulate's annulled victory, labor leaders were labeled communists and jailed.