The Castaneda Castro government passed a measure that loosened the restrictions on labor unions in January 1946. However, the government did not liberalize its response to strikes; In October 1946, workers from a bakers union and a textile factory led a general strike in the hope of ousting Castaneda Castro from the presidency. The strike was put down by the government, and two hundred workers were arrested. In September 1946, in response to a further strike, Castaneda Castro disbanded all the labor organizations and exiled their leaders. The situation in the country during Castro's government has been described by historian Paul Almeida as a "state of siege. R.V. Elam stated that the governments of Aguirre and Castaneda Castro "reestablished elitist rule, restricted political activity." James Dunkerley has stated that during Castaneda Castro's government, the country saw an economic recovery as the price of coffee rose, even as a return to democracy became less likely as the cold war strengthened anti-communist sentiment.