I think the problem is that every recession on that chart has been "bailed out" in some form by Fed monetary policy, mostly to the benefit of asset holders, and

I think the problem is that every recession on that chart has been "bailed out" in some form by Fed monetary policy, mostly to the benefit of asset holders, and usually far too early or excessively. The increasing overall trend can be attributed to anti-progressive tax brackets (the wealthy pay 20% while the middle class pays 30-45%). But even in an increasing wealth inequality environment, a proper recession should at least decapitalize the stupid among the wealthy and benefit better capital allocators, which is beneficial. Better to have productive Elon Musks getting rich in the aftermath of economic turmoil than SBF's and Adam Neumanns.