Your date is well chosen. Things went south starting in the 1880s.
So we got the sherman anti-trust acts in the 1920s thru the 1930s and things started going badly again in the 1980s when many of the protections were bypassed or repealed.
Companies would still be making huge profits if they shared the wealth with their workers and the economy would be more robust. It's sort a tragedy of the commons. When one company cuts salaries, it does well. When most companies cut salaries, then things are just miserable and the companies get no competitive advantage.
Walmart's raise won't really give a raise (it's about .3% of their profits- affects a tiny percentage of their workforce). But a real raise by walmart ($5 for every employee) would still leave them with enormous profits and their workers would have more money to spend (which would largely be spent at walmart-- raising walmart's sales and increasing it's profits).
The actual figures are-- annual profit of Walmart $19 billion. Cost of $5 raise, 7.5 billion. Leaving Walmart with a profit of 19 billion.
But wait... they spent 7.6 billion buying back stock to raise stock prices (which is a very expensive way of increasing pay to the executives). And they gave $12 billion to investors in dividends. So they could have a net profit of 20 billion, give everyone a $5 raise (or a $4 raise and put staffing levels back where they were in 2012 before they cut staff too far with disastrous results), still give 12 billion to shareholders in dividends (executives and walton family have a lot of stock so they are getting a nice chunk here) and cut the 7.6 billion stock buy back.