Did individual businesses really pay their workers more because they thought it would prevent the country from becoming communist? Do you have evidence for that claim? I find it hard to believe, because even if it is true that this would prevent countries from becoming communist, it is a free-rider situation. It would be rational for any individual business to keep paying low salaries because any individual business policy is unlikely to be the difference between becoming communist and staying capitalist.

A more logical avenue of analysis seems to me to consider basic economic principles. Price is determined by supply and demand. Did we see increases in labour supply that were not offset by corresponding increases in demand? Yes:

1. Women's participation in the labour market didn't quite double the supply of labour, but it greatly increased it.

2. Companies offshoring their production to developing nations also greatly increased the supply of labour.