Final answer:
The growing income inequality between the wealthy and middle Americans poses a key concern for the U.S. economy. The disparity has worsened since 1980 due to policy choices and was exacerbated by the Great Recession, affecting the average citizen's sense of prosperity and well-being.
Step-by-step explanation:
A key issue that has created concerns about the success of the U.S. economy is the growing disparity between the incomes earned by the wealthy and those earned by middle Americans. This income inequality has been a mounting concern, especially since policies enacted from 1980 onwards have predominantly benefited the upper echelon of society while the middle and working classes have seen little of this growth. The economic restructuring away from manufacturing and the adoption of supply-side economics, also known as Reaganomics, are often cited as key factors contributing to this divide.
The Great Recession of the late 2000s exacerbated the income disparity, leading to a sense of declining prosperity among many Americans. Despite overall economic growth, the benefits have not been evenly distributed, fostering a sentiment of relative impoverishment which impacts health outcomes, crime rates, and psychological well-being. Debates around the role of the government in regulating businesses have intensified, with policies aimed at promoting fair competition, enforcing contracts, and ensuring environmental protection serving as the government's attempt to level the playing field and curb the excesses of corporate power.
In conclusion, there is a tension between the free market ideals foundational to the American economy and the governmental interventions that have become essential to protect consumers and ensure fair business practices. The growing income inequality in the U.S. poses significant challenges to the perception of opportunity and prosperity that are central to the nation's identity.