It can be both; and almost certainly is. GDP growth has been inflated by debt-fueled spending. But the change in inequality stems largely from globalization a

It can be both; and almost certainly is. GDP growth has been inflated by debt-fueled spending. But the change in inequality stems largely from globalization applying downward pressure on wages. Simply: 10, 20, or 30 years ago, more of the component cost of a product went into middle and lower class wages. Now, wages are down; more-so for industries where costs are easier to optimize globally. Protectionism was the wrong conclusion, but labor had it exactly right when they posited that buying lower-cost goods (those with costs sourced internationally) would squeeze the income of the working class. There's no way it couldn't. (What labor glossed over, is that stagnant wages don't necessarily mean stagnant quality of life. But they were organizations rewarded only for increasing wages, so they predictably had no interest in the larger objective view.)