During the postwar years there was an implied social bargain.
The mega-rich were taxed at high rate and the money was invested into the middle class.
Money in middle class pockets meant that the capitalist had to innovate and add jobs in order to capture that money. This turned into the greatest economic engine in history.
Consequently, the middle class was able to send a generation of children to affordable government subsidized universities. America created the most powerful and productive middle class in history. The government investment in the middle class paid off.
Reagan bragged about our entitlement fed Middle Class during the cold war, saying that the average working American lived better than the Soviets.
Unfortunately, the Republicans convinced us to trade middle class programs for tax cuts to the wealthy. They said government didn't need to concern itself with affordable education, full employment, and rising living standards -- the market would take care of it.
When the money failed to trickle down; when the good jobs got shipped overseas, the American consumer had to make up for his wage & benefit stagnation with debt. Meanwhile, unprecedented capital went to the wealthy... but, tragically, they didn't invest the promised amount in the real economy. They didn't add solid jobs -- they ushered a transition to the no-benefit Walmart model. They "invested" in Washington (to secure the right to merge into too-big-to-fail behemoths, and to cut the middle class out of national prosperity by acquiring cheap 3rd world labor)... and, finally, they invested in speculative garbage. America got played. The profit motive created casino capitalism: the era of bubbles and phantom wealth was created. It was the worst of both worlds. The wealthy had more capital than could be productively invested in the real economy, while the middle class didn't have enough money to consume, therefore they required ever larger quantities of debt just to drive the domestic consumption economy. In short, Reaganomics, with its 30 year cycle of debt based consumption and leveraged speculation, was a disaster.
You might ask what the most tragic thing the wealthy did with all their extra capital.
They loaned it to the middle class at 18% interest. They loaned the middle class the very money which used to come in the form of benefits and wages. The credit industrial complex was born. The wealthy stopped paying workers enough to survive . . . and they handed them a credit card.
(we all know how that ended)
America swallowed poison in 1980