According to most historians who are interested in labor issues, the major problem in the 1920s was the weakening of labor unions. Historians argue that this led to many of the problems that workers faced during this time.
During the 1920s, the federal government was dominated by laissez-faire, Republican presidents. These presidents were pro-business and anti-union. At the same time, companies tried to take more control over their workers through "welfare capitalism" in which the company tried to give their workers more incentives to keep them out of unions. Between government and corporate efforts, history books say, union membership was driven down.