Many liberals think(or at least claim) that government revenue and spending went down dramatically during the “Reagan Revolution” of the 1980s and have remained much lower than they were then. This is then used as the explanation for the stagnation in average wages and the increased inequality. This claim is demonstrably false. Here is the reality:
Automation, immigration, free trade and the rise of value transference in the economy are the real reasons for the increase in inequality.