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The economic boom of the 1920s initially weakened labor unions as rising employment and increased consumer demand led to higher wages and better working conditions without significant union intervention. Many workers found employment opportunities abundant, leading to a decline in union membership. Additionally, the era was marked by anti-union sentiment and government policies favoring businesses, which further marginalized unions. However, this period also sowed the seeds for future labor movements as workers began to seek more rights and protections in the face of economic inequality.

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