A lot of children held full-time jobs back then, why shouldn't they have a smoke and a drink and a game of pool after they got off work, same as any other working stiff?
Although maybe not specifically when "Pinocchio" came out, child labor was outlawed in the US some time in the 1930s, I'm not sure when. A lot of our more humane labor laws came from that era, such as the 8 hour day and forbidding anyone under 16 to hold a full-time job. Unemployment was massive and a huge social problem, child labor was basically outlawed to make more jobs available to adults.
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