There is a very nice term for a period of concentration of wealth in the United States. The “Gilded Age” of rapid economic development happened after the Civil War to the turn of the century 120 years ago.
The bright side of the Gilded Age was rapid economic development. After the Supreme Court delivered the 1823 verdict using the Discovery Doctrine to declare all land belong to Caucasians, the first oil well that propelled industrialization started in 1859, followed by the completion of the transcontinental railway in 1869. The concentration of wealth led to the passage of the Sherman Antitrust Act in 1890, before the opium revenue from China dried up in the early 20th century after all treasures in China had been emptied. The father of President FDR was a known opium trader.
The dark side of the Gilded Age was the exploitation of labor, even with the emancipation proclamation after the Civil War. African Americans slaves and Asian American coolies had no representation. As a result, Samuel Gompers started in 1881 as The Federation of Organized Trades and Labor Unions that initially drove the support for the Chinese Exclusion Act of 1882 after the Chinese Americans finished the transcontinental railroad 150 years ago.
Without generally accepted accounting principles to compare financial performance on a consistent basis, the stock market crashed partly due to fabricated financial statements, followed by depression (which seems small compared to the current Covid19 pandemic). The call for labor unions was loud and strong. By 1954, the percentage of all workers who belonged to a union peaked at 35%, and the number of union members peaked in 1979 at 21 million workers. At the peak of US economy, there was a thriving middle class, partly due to the Ford Motor Company’s compensation strategy to pay workers sufficient wages to pay for a car.
Labor unions hit a nadir when Ronald Reagan, the President who took USA from a creditor nation to a debtor nation, fired 11,359 air traffic controllers and ban them for life as federal government workers in 1981 (before the ban was lifted by Bill Clinton in 1993).
While not perfect, Labor Unions protect workers with basic rights like safety and health. It is blatantly clear today that health workers, fire fighters and other public servants do not have these basic rights when Donald Trump leads the charge against basic worker rights and refused to take responsibility for even facilitating personal protective equipment to these front line workers against the Covid19 pandemic.
In every crisis, there are dangers and opportunities. The danger of the Covid19 may deliver an opportunity to organize an inclusive and stronger Labor Union. Please do not add a racial line to the increasing wealth gap. Remember the LA police had very little incentive to help when the African American community decided to destroy the Asian American (largely Korean American) community after the Rodney King riots. The winners of the riots were the wealthy Americans who supported the removal of the estate tax so they can keep their wealth. Other than the perks like traveling to Florida for 33% of the time he was supposed to work at The White House, the biggest visible compensation Donald Trump paid his family was when he signed the estate tax law to exclude $11.4 million per person, and the highest estate tax rate became 40%. In 2001, the excluded amount was $675,000, and the highest tax rate was “reduced” to 55% from 77% as recently as 1970.