Why did the gap between the wealthiest and poorest Americans get much smaller in the years between 1930 and 1970?

The income inequality in 1930 to 1970 was reduced because of some policies put in place as of that time reduce it.

These policies are listed below.

Explanation:

economic literature largely points to three explanatory causes of falling wages and rising income inequality: technology, trade, and institutions. The existence of different explanations points to the difficulty of pinning down causes of inequality.

The next group of factors of income inequality involves demographic factors, such as urbanisation, age structure of population, and composition of households, and also includes factors related to education such as the population's educational level, education inequality, and education expenditure.

Six policies to reduce economic inequality.

Increase the minimum wage.

Expand the Earned Income Tax.

Build assets for working families.

Invest in education.

Make the tax code more progressive.

End residential segregation.

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