My guess is because as the rich got richer with implementation of Trickle Down economics (aka Piss On 'Em) they needed somewhere to invest their windfall so they paid to have the markets deregulated (which included eliminating interest rate caps) then they lent that money to us stupid schmucks at interest, allowing us to imagine we were getting richer too.
And really, at the same time Ronnie cut tax rates he was borrowing money to run up military spending, so the economy really was humming there for 20 years or so (not to mention the cheap oil). I've an average intelligence and no schoolin' (they were experimenting with secondary education in the '70 so I didn't even go to high school more than 4 hours a day) and I've done OK even though "making money" was never really a goal.
If you are old enough, consider how cheap things are today compared to the '60s or '70s. Heck, consider how many Things there are today compared to then! Lots of stuff to make people think they have it pretty good – as long as their paycheck keeps coming, that is. Cars are nicer, homes are bigger and fancier and of course electronics... Sure we need an income and a half to do it, but the ladies wanted to dump the aprons and have a chance to get out in the world anyway and all those cool appliances and TV dinners helped things along - and don't forget TV itself, the great babysitter.
Speaking of electronics, tech in general really kicked in in the '80s and was a big deal, replacing to an extent the accelerating offshoring - at least for a while. But what tech did for all businesses was allow companies to become way more productive, and even though the owners kept much of the profit, many workers were kept on in useless jobs for quite a while longer than needed. When, shock of shocks, Greenspan's opinion was wrong and the markets turned out to not be as efficient as he thought and the layoffs began (even back in '87?) I believe there was an abundance of dead wood pruned that had been masked by that productivity increase. Those people were not rehired, not in 2000 and they won't be now either.
And I'll whack on Reagan one more time, busting the Air Traffic Controllers union was a big deal, making union busting and all-american sport. And it wasn't such a big deal that using "wedge issues" didn't work to keep unions members voting for republicans, after all, everyone had good jobs in the '90 so what the heck.
So; loose credit, computers, 2-income families and ingrained deficit spending has masked the inequality and good politicking has convinced people to vote against their economic best interest.
I'm kind of on the fence about unions, especially public unions. Regardless, I think WI may turn out to be Waterloo for 'pubs plans for '12. They overstepped like I said they would. Here is a good article from
Forbes and polls support collective bargaining 60-30.
Another interesting article on overreach.
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)