America has never been richer. But the gains are so lopsided that the top 10% controls 69% of all wealth in the country, while the bottom half controls just 3%. Meanwhile, surging corporate profits have mostly benefited investors, not the broader public.

This divide is expected to widen after President Donald Trump’s sweeping new spending bill drastically cuts Medicaid and food aid, programs that stabilize the economy and subsidize low-wage employers.

Moreover, the tax cuts at the heart of the bill will deliver tens of billions of dollars in benefits to the wealthiest households while disproportionately burdening low-income households, according to analyses by the nonpartisan Congressional Budget Office and Joint Committee on Taxation. By 2033, the bottom 20% will pay more in taxes while the top 0.1% receive $43 billion in cuts.

I am a sociologist who studies economic inequality, and my research demonstrates that the class-based inequalities exacerbated by the Trump bill are not new. Rather, they are part of a 50-year trend linked to social cleavages, political corruption, and a declining belief in the common good.

The decades following World War II were broadly prosperous, but conditions began changing in the 1970s. Class inequality has increased enormously since then, according to government data, while income inequality has risen for five decades at the expense of workers.

Economists usually gauge a country’s economic health by looking at its gross domestic product as measured through total spending on everything from groceries to patents.

But another way to view GDP is by looking at whether the money goes to workers or business owners. This second method—the income approach—offers a clearer picture of who really benefits from economic growth.

The money that goes to labor’s share of GDP, or workers, is represented by employee compensation, including wages, salaries, and benefits. The money left over for businesses after paying for work and materials is called gross operating surplus, or business surplus.

The share of GDP going to workers rose 12% from 1947 to 1970, then fell 14% between 1970 and 2023. The opposite happened with the business surplus, falling 18% in the early postwar decades before jumping 34% from 1970 to today.

Meanwhile, corporate profits have outpaced economic growth by 193% since 1970. Within profits, shareholder dividends as a share of GDP grew 274%.

As of 2023, labor had lost all of the economic gains made since 1947. Had workers kept their 1970 share of GDP, they would have earned $1.7 trillion more in 2023 alone. And no legislation or federal action since 1970 has reversed this half-century trend.

When more of the economy goes to businesses instead of workers, that poses serious social problems. My research focuses on three that threaten democracy.

Not just an issue of income and assets, growing class inequality represents the fraying of American society.

For instance, inequality and the resulting hardship are linked to worse health outcomes. Americans die younger than their peers in other rich countries, and U.S. life expectancy has decreased, especially among the poor.

Moreover, economic struggles contribute to mental health issues, deaths of despair, and profound problems such as addiction, including tobacco, alcohol, and opioid abuse.

Inequality can disrupt families. Kids who experience the stresses of poverty can develop neurological and emotional problems, putting them at risk for drug use as adults. On the other hand, when minimum wages increase and people begin saving wealth, divorce risk falls.

Research shows inequality has many other negative consequences, from reduced

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