Final answer:
The statement is true; there has been a widening income disparity since 1980 due to policies like Reaganomics and economic changes. This has resulted in the rich accumulating more wealth while average Americans face stagnant wages and a greater tax burden.
Step-by-step explanation:
The statement that the rich have gotten richer and the poor have become poorer since 1980 is true. The disparity between income levels has indeed widened, a phenomenon that has been influenced by multiple economic and policy changes. The adoption of supply-side economics, commonly referred to as Reaganomics, led to a restructuring of the tax system that favored the wealthy, resulting in a situation where economic growth has predominantly benefited the rich. Meanwhile, the economic restructuring away from manufacturing and the Great Recession of the late 2000s have exacerbated the inequality. This has led to lower and middle-class Americans facing stagnant wages and bearing a larger share of the tax burden, while CEO pay and corporate profits have soared, dramatically outpacing the income growth for the average worker.
Consequently, the wealth gap resembles more closely that of developing economies than that of other developed nations. The influence of the very rich on public policy has solidified, while the average worker has been left with fewer resources to improve their standing. This growing wealth disparity has profound implications for aspects of society, like health outcomes, crime rates, and psychological health. Several statistics underscore this trend: between 1966 and 2001, the top 0.01 percent of earners received half of the nation's income gains. CEO pay has risen by over 298 percent since the 1970s, while wages for the majority have stagnated or decreased.