>Starting in the ’80s, productivity gains were no longer shared with workers. Therefore, the wage share of the economy began to decrease. As a percentage of total output, wages have fallen from a high of almost 52 percent around 1970 to less than 43 percent today (see Graph 1). Meanwhile, inequality within wages also increased. The upshot? The rich began capturing nearly all the results of economic growth—the top 1 percent’s share of national income increased from about 8 percent in the mid-’70s to about 23 percent today....they “save” by buying financial assets—which means that most of the fruits of economic growth have been channeled into asset price increases, rather than consumer price inflation.
If you just give everyone more money to increase AD via QE, tax cuts, free income or whatever else... it all gets spent and where do the increased sales and profits go? You just stay in the same cycle and have to continue sending more fed checks.
It's the same reason minimum wages don't work. Setting a lower bound does nothing when an upper bound doesn't exist.