I always say that I don't understand economics and now it seems that I'm in "good" company.
But, here's something that makes some sense. The free market encourages powerful corporate interests to collude with the government to consolidate power. Disaster capitalism as written about by Naomi Klien.
Why does she keep talking about the last 35 years? Here's a graph from Paul Krugman's new blog that shows how to pin point the changes in economic equality. The graph tracks by year the percentage of capital gains that the richest 10% of America enjoys. High marks in the graph represent unequal income distribution. After a long period of stability, the graph rises steeply at about 1982 or 35 years ago.