HI, this blog comes in part from what I researched and understand on how wages stagnated while big companies profits, jump up like fireworks.
First in general, salaries back in the last century (with inflation) accounted were higher than now, and workers understood that, working would give them benefits which gave a growth to economy, workers had consumption power, could afford a house and car.
The problem is that companies got greedy a (natural human behavior) and started to close down the wages. What was the workers solution?
More work! more hours to get more money, it was good for the corporate bosses, becouse of more productivity. But the cost of more work hours, undercut the levels of higher wages. Starting to trouble the middle class.
With the technological advances in the 80s, productivity raised into a boom, giving already rich companies, an incredible amount of wealth, but the disparity of workers wages to company profit kept the same.
With all that incredible amount of money, top CEO and administrative got themselves, millions in salaries and bonuses.
But that wasn't enough! With so much capital running, they deposited the funds at the banks, and found another gold mine, they could lend the money to the workers in order to maximize comsuption instead of pay raises, making more money with interest, not caring that millions of people fell into a circle of debt. More profit!
That's a small part of the richest 1%s business history.
And greedy capitalism for you!