Rising inequality is only the clearest indicator of an economic transformation that has touched virtually every aspect of Americans. In the last 30 years the rich were getting richer and the poor poorer. The usual reasons for this are globalization, skill shifts, technological transformation and economic change. But what about politics, polity and policies? Might the problem be as well homemade?
In this paper I will argue that the decline of labour unions and rise of big business and high finance were of much greater importance in explaining the unequal income and wealth distribution. Both political parties were taken hostages by organized money. Dependent on their money Republicans and Democrats as well act like hosts controlled by a dangerous virus.
The political process is on one hand characterized by drift, which is the deliberate failure to adapt public policies to the shifting realities of a dynamic economy (Hacker and Pierson, 2010: 52). And on the other hand by massive tax cuts and policies in favor of big money. This results in a vastly distorted distribution of income and wealth in which a small elite – the ominous 1 percent – holds more than 20 percent of national income and a by politicians abandoned middle class.

