"The period between WW2 and the 70’s saw a shrinking wealth gap brought about by a hybrid economy of capitalism under a high amount of government regulation as well as strong labor unions. "
That's what history tells us. But it's not exactly right.
In the 1800's (still a real Gold standard) we invented trains, autos, electricity, communications - it was the last big 'bubble' of innovation (driven by hard money).
As this efficiency worked it's way into the economies of the world the wealth gap decreased for nearly 100 years. BUT - politicians implemented this thing in the early 1900's called the 'income tax' (temporary I might add) that actually ROBBED the general population for the next 100+ years of that efficiency (which created poverty we know today - it's true - central government planning creates poverty, not solve it). In spite of the income tax, wealth gap closed and the the politicians did not steel ALL the deflationary progress. They did not have too, they got filthy rich - it was an epic run!
We are at the end of that cycle - we have been for 50 years (the US dollar actually would have collapsed in the 70's if we did not cheat and go off the Gold standard - which had been decaying for decades).
Follow nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe and read his book "Price of Tomorrow" - great read. Deep dive it. Go beyond just the book - as Jeff says we have NEVER lived in a true free market until #Bitcoin.
Conclusion. Capitalism created all you have today. Fiat has been stealing the benefits and funneling it to those closest to the money printer for decades. Deflation is the natural state of Capitalism and once the theft (taxers and printing) are GREATER than the deflationary pressures of real economic gains, the pyramid collapses (which it is doing right now).
The natural state of human innovation is capitalism - the exchange of (base layer here) REAL energy for REAL energy (you catch a fish I trade for a fur to make a coat - exchange of ENERGY).
Bitcoin will bring us back to that as it's real human energy maximizing time preference of money (which drives innovation). nostr:npub1gdu7w6l6w65qhrdeaf6eyywepwe7v7ezqtugsrxy7hl7ypjsvxksd76nak book "Principles of Economics" does a great job explaining this concept.
Also deep dive history of civilization. It seems like this has nothing to do with money but capitalism with a currency (real money, not fake) was the ONLY combination that created civilization. Without it, we would still be in packs of 150 people or so living off the land.