There exists a view, which says that capitalism is the best possible economic system, so it requires no reforms except a few minor ones. They say capitalism functions smoothly and there is a recession only when there is an incorrect government policy. Another more insightful view is that inequality represents extremely high profits made by businesses that exploit the labour of workers.
Today, 42 percent of all wealth in the US is held by the richest 1 percent of citizens. The percentage of wealth held by a tiny portion of the population has been rising as a long trend ever since 1980. That top 1 percent of all wealth-holders have a majority of their income in the form of profits, rent and interest. For the rest of the population — that is the other 99 percent — the bulk of all income comes from wages and salaries. Thus, the inequality of income and wealth in the US reflects the struggle between capitalist owners and employees, or, in popular language, the 1 percent vs. the 99 percent.
Altogether, there have been 37 economic recessions or depressions in the United States. The most recent was the great capital Recession of 2007-2009, in which 12 percent of workers were fully unemployed.
The illusion still persists that capitalism is all right provided it is run on proper lines. Poverty to-day is due to the capitalist system and will not be remedied except by establishing socialism.