The income divide increasing int he past few decades is due to globalization. This much is obvious. Many huge American companies have done super well as we mov

The income divide increasing int he past few decades is due to globalization. This much is obvious. Many huge American companies have done super well as we move to a global economy - tech is a great example. There's more money to be made when you can start selling more iPhones to India and the development costs stay the same. Whether this new global revenue wealth goes workers vs corporate pockets depends on the supply of labor. Does Apple mostly want to employ Americans? If so, these rich global companies need to compete for a limited supply of American workers - our salaries rise. Tech workers in the USA make much more money than other countries - we have many successful companies here all wanting American tech labor. On the flip side , not all American labor falls under this category. If companies don't care if the labor is domestic or outsourced or immigration is easy (flexible supply), then American workers don't see much gain from these global companies making more global money - the new wealth is split between top American executives and developing countries.. Most companies fall into the latter category - which is why we've seen the income divide grow, the average American worker's wage stagnate, and developing countries wages grow.