The Rich Get Richer: America’s Wealth Disparity Crisis Since 1980
Some Boomers Call It Whining. We Call It Surviving a Rigged Economy.
An Essay By Friendo Media Staff
A few years ago I was complaining to my aunt about how hard it is to stay afloat in the current economic landscape. Her response?
“I worked full time while going to school and was able to pay my college off in full, along with my mortgage. I don’t understand why you kids complain so much when all you need to do is pull yourself by your bootstraps and grow up.”
Immediately, red flags started going off for me. Working a minimum wage job that enabled her to pay for school in full while also paying off a mortgage? How was this possible?
So, I asked, “Well, how much were you making?”
“$2.50 an hour!” (Adjusted for inflation, this is $20.61 in today’s dollars.)
“And how much was your college tuition?”
“About $100 a year!” (She went to community college. Upon investigation, this amount was fees and books. Community college was free back then.. Adjusted for inflation, this is about $837 in today’s dollars.)
“Okay, what about your mortgage? How much were you paying for that?”
“About $100 a month.” (She bought this house at 19 with my uncle for $15,000 in 1967. They sold the house in the 1990s, but it’s currently assessed for $790,000. Again, adjusted for inflation this is about $837 in today’s dollars.)
“So, it took you 40 hours of work to cover your mortgage. And another 40 hours of work to cover a year of college. I am making $10 an hour and my rent is $2,000, so it takes me 200 hours of work to cover my rent. My tuition is $2,000 a quarter, so $6,000 a year. It takes me 600 hours of work to cover my tuition for the year. So how are you telling me to just pull myself up by the bootstraps when proportionally, you had it significantly easier financially?” (editor’s note: this was in 2010. Rent is higher, tuition is higher, minimum wage is not higher.)
“Well you need to just find a better paying job! It’s your fault you’re not being paid more.”
This story is not unique to me. In fact, many millenials joke that when we are eating avocado toast, we should have just saved up for a house instead. Since 1980, the United States has undergone a seismic shift in its economic landscape—one where the rich have surged into stratospheric wealth, while the rest have been systematically left behind. The American Dream, once a plausible goal for the average worker, now feels like a cruel mirage for millions who are working harder for less, struggling to meet the basic costs of living that have far outpaced their stagnant wages.
In the early 1980s, the top 1% of earners in the U.S. controlled roughly 10% of the national income. Today, they command over 20%, according to data from the Economic Policy Institute. Meanwhile, wages for the bottom 90% have either stagnated or declined in real terms, despite consistent gains in worker productivity. Simply put: people are doing more and earning less, while the elite few hoard the gains.
What Changed?
The short answer: policy. Since the Reagan era, we’ve seen a systematic dismantling of labor protections, a dramatic reduction in top marginal tax rates (from 70% in 1980 to 37% today), deregulation of industries, and the weakening of unions. Simultaneously, capital gains—income from stocks and investments—have been favored over wages, the primary income source for most Americans. These changes were sold under the guise of “trickle-down economics,” yet the only thing that has trickled down is economic insecurity.
The Real Cost of Living
Let’s look at some cold, hard numbers. In 1980, the average cost of a new home was about $47,200. Adjusted for inflation, that’s about $170,000 today. Yet, the median home price in 2024 is over $420,000. Renters face the same squeeze. In 1980, a one-bedroom apartment averaged around $300/month—around $1,100 today in inflation-adjusted terms. But in most U.S. cities, you're now looking at $1,500 to $2,500, with wages failing to keep pace.
Healthcare is another egregious example. In 1980, annual healthcare spending per capita was about $1,000 (adjusted: $3,600 today). In 2023, that number was over $13,000. A college degree in 1980 at a public university cost about $2,100 a year ($7,600 today), while now it often exceeds $25,000, even for in-state students.
Meanwhile, the federal minimum wage has remained at $7.25 since 2009. Adjusted for inflation, it’s worth less than it was in 1968.
The Disappearing Middle Class
All of this contributes to the erosion of the American middle class. The wealth gap is no longer just about the poor versus the rich—it’s about the complete hollowing out of the working class, the very backbone of our economy. People are working two or three jobs to survive. Millennials and Gen Z carry more student debt, face higher housing costs, and are less likely to own homes than their parents—all while being told they simply aren't working hard enough.
It Doesn’t Have to Be This Way
There are solutions—fairer taxation of the wealthy, universal healthcare, robust labor protections, student debt relief, and a livable minimum wage. Other nations have adopted such measures and maintained strong economies without such severe inequality. We can too, if we choose to prioritize equity over excessive profit.
The disparity we see today isn’t accidental. It’s the direct result of decades of policy choices that privileged wealth accumulation over human well-being. If we want to reverse the course, we must first acknowledge that the system isn't broken—it’s doing exactly what it was re-engineered to do in the 1980s.
But how do we fix it?
1. Organize Locally
Join or form tenant unions to fight rising rent and predatory landlords.
Support worker unions or start one in your workplace. Organized labor remains one of the most powerful tools for wage and benefit gains.
Form mutual aid networks to share resources and support neighbors—especially during emergencies or economic hardship.
2. Vote with Purpose
Vote in every election—local, state, and federal. Local policies often impact cost of living (housing, healthcare access, public transit) more than federal ones.
Support candidates who prioritize economic justice: living wages, affordable housing, universal healthcare, and progressive taxation.
Pressure elected officials with calls, emails, and town hall questions demanding action on inequality, tax reform, healthcare, and labor rights.
3. Divest from Extractive Institutions
Move your money to credit unions or community banks that reinvest locally.
Be mindful of your spending—support worker-owned cooperatives, small businesses, and fair trade products over exploitative corporations.
Avoid predatory lenders and advocate for financial literacy in your community.
4. Raise Awareness and Educate
Share stories, books, documentaries (e.g. Inequality for All, The Big Short, The Divide) that explain systemic inequality.
Host reading groups, teach-ins, or community forums about the history and consequences of wealth disparity in America.
Teach children and teens economic basics—how taxes, wages, unions, and healthcare work.
5. Push for Policy Change
Advocate for:
Universal healthcare
A living wage (not just a higher minimum wage)
Affordable housing development
Free or reduced-cost college and student debt cancellation
Higher taxes on the ultra-wealthy and corporations
Join national groups fighting for equity (e.g. People’s Action, Economic Policy Institute, DSA, Poor People’s Campaign).
6. Leverage Your Workplace
If you're in a leadership role, audit pay equity, offer livable wages, and eliminate unpaid internships.
Push for worker voice in decision-making, especially around wages, benefits, and scheduling.
Offer support for coworkers navigating student debt, healthcare, or childcare.
7. Donate Strategically
Contribute to:
Bail funds, housing justice orgs, or union strike funds
Political candidates or initiatives pushing systemic change
Community groups doing direct service and advocacy work
Collective pressure changes systems. Wealth disparity is political, but it’s also deeply personal. These issues won’t be solved by individuals alone—but individuals, when organized and informed, can absolutely change the trajectory of history. Now we have to decide: do we continue to accept an economy built for billionaires, or do we rebuild one that works for all of us?
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