In the years between 1950 and 1970, there was a significant decrease in economic inequality, which can be attributed to both market dynamics and specific government interventions. Notably, policies like the GI Bill enhanced access to higher education, contributing to a more educated workforce. Additionally, the implementation of a progressive tax system during World War II played a crucial role in redistributing wealth and reducing disparities.

Overall, this period illustrates how strategic government actions can influence economic equality, highlighting the importance of accessible education and equitable tax policies in promoting a fairer society. Stiglitz's analysis underscores that while market forces are important, they alone are insufficient to address inequality without supportive governmental frameworks.