Final answer:
During the Red Scare, conservative business people exploited fears of communism to undermine labor unions and strengthen their own economic standing. They used tactics like the Palmer Raids and accusations of disloyalty to isolate and discredit the labor movement, often without proper legal grounds, thereby securing their own interests.
Step-by-step explanation:
During the Red Scare, conservative business people leveraged the pervasive fear of communism to delegitimize the labor movement and secure their economic interests. Under the guise of combating a perceived threat, individuals such as Attorney General A. Mitchell Palmer conducted what became known as the Palmer Raids, targeting labor unions, especially those connected with the International Workers of the World (IWW). Additionally, allegations of disloyalty were utilized against union leaders, as in the case of the Bisbee Deportation of 1917, where striking miners were accused of being part of a Communist or pro-German conspiracy, and were then forcibly removed and left in the New Mexico desert. These actions against the labor unions during the Red Scare reflect how economic interests and anti-Communist sentiments were intertwined in the early 20th century.
Moreover, the climate of fear allowed for the implementation of the American Plan, which sought to discredit unions and prohibit mandatory union membership for workers. The fear of communism, encapsulated by the term 'Red Scare', not only sparked a nationwide paranoia but also served as a tool for conservative business interests to undermine organized labor and maintain control over the workforce.