The hint on the wealth inequality is this: "In earlier decades when the Phillips curve was steeper, inflation tended to rise noticeably in response to a streng

The hint on the wealth inequality is this: "In earlier decades when the Phillips curve was steeper, inflation tended to rise noticeably in response to a strengthening labor market" It doesn't really matter much to the market if people are employed or not. Purchasing power is not vested in the people with a W-2.