Explainer: How Did Inequality in America Get So Bad? And What Can the Government Do to Fix It?

http://www.thenation.com/article/164681/explainer-how-did-inequality-america-get-so-bad-and-what-can-government-do-fix-it

The dismantling of the fragile New Deal–era financial regulations over this time period tracked an explosion in salaries for those who work in the financial sector. Inequality at the top end, particularly at the top 0.1 percent, is largely a function of those highly paid employees. If the financial sector produced mass prosperity, those salaries might be worth it. But now that we’ve survived bubbles, knowingly created bad financial instruments and bailouts for “too big to fail“ firms, it’s clear that financial services industry is not a generator of wealth for the average taxpayer.