Answer:
Polarization refers to the increasing divergence between two opposing groups or factions. In the context of the US economy, polarization refers to the growing divide between the wealthy and the rest of the population. In recent decades, there has been a trend towards increasing income and wealth inequality in the United States, with the top 1% of earners capturing a disproportionate share of economic growth and wealth accumulation.
This polarization has been driven by a variety of factors, including globalization, technological change, and changes in government policies and regulations. For example, globalization has led to the outsourcing of many jobs to lower-wage countries, while technological change has led to automation and the displacement of workers in certain industries. At the same time, changes in tax policy and the weakening of labor unions have contributed to the concentration of wealth and income at the top.
The result of these trends is that the US economy is becoming increasingly divided between those who have seen their incomes and wealth grow rapidly and those who have been left behind. This polarization has implications for economic growth, social mobility, and political stability, as it can exacerbate social and political tensions and limit opportunities for large segments of the population.
Efforts to address this polarization have included proposals to raise the minimum wage, strengthen labor protections, and reform the tax system to make it more progressive. However, these efforts face significant political and economic obstacles, and it remains to be seen whether they will be successful in reversing the trend towards economic polarization.