I saw the movie "Inequality for All," where Robert Reich explains the depth and meaning of inequality in America. He paints a compelling picture.
Reich sets up the movie with a teaser: "Something happened in the mid-'70s."
Indeed "something did happen in the mid-'70s." For one thing, since then workers' wages as a fraction of the total economy have lagged by more than a trillion dollars per year. If workers' wages had kept up with gains in productivity since the mid-70's, wages would be double what they are now. Most new income goes to the top 1%.