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Unions lost their appeal in the 1920's because much of the work force consisted of immigrants who could not speak English and spoke a variety of languages. This made it difficult for unions to organize various ethnicities. Also, many unions excluded African Americans.

Better answer: as union organizing spread after WWI and strikes became more common, US courts almost universally ruled unions illegal conspiracies, and strikes illegal intimidation and extortion. After hundreds of union members lost their jobs and went to jail, interest naturally declined.

In 1935, unionizing became LAWFUL, and its popularity soared.

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