Final answer:
In the 1920s, profits and wages increased significantly, but the benefits were unevenly distributed, leading to widened wealth gaps and not an overall increase in prosperity for everyone. Labor movements declined due to various economic and social factors. This period preceded the Great Depression, characterized by a global trade decrease and persistent economic challenges.
Step-by-step explanation:
The direct answer to the question is D:
However, this significant increase predominantly benefited the corporate profits and the wages of a small portion of the workforce, leading to increased inequality.
In the 1920s, often called the 'Roaring Twenties', there was a notable increase in industrial growth and a general economic boom, yet this prosperity was not uniformly distributed. As production increased rapidly, without a corresponding rise in wages for the majority, the wealth gap between the rich and the poor widened. This disparity meant that fewer Americans could actually enjoy the economic progress of the decade.
The labor movement faced challenges due to the influx of immigrants, many of whom were willing to work in poor conditions, and the reluctance of farmers turned city workers to join unions. Racial discrimination also played a role, as many unions excluded African Americans, and there was a general decline in the need for unskilled labor. As a result, many Americans changed their attitudes not only about unions but also about immigration itself.
Factors like rising prices, stagnant wages for the majority, unbalanced income distribution, and overbuying on credit eventually led to decreased consumer purchasing, contributing to the onset of the Great Depression. During the Depression, the economy became even more fragile, trade decreased globally, and unemployment and inequality persisted, evidencing the volatility of the era.