Whatever the problem is, the solution is not employer-bashing and suppressing cheap labor.
Those at the bottom of the heap sacrificing a part of their own lives, struggling to make ends meet, so that those who are . . .
Yes, those at the "bottom" sacrificing etc. are made better off by cheap labor. But forcing the labor cost to go up artificially, against market supply-and-demand, makes those at the "bottom" worse off. It forces up the price level, forcing all those at the bottom to pay higher prices, thus making them poorer.
What you tend to overlook is that workers were better off decades ago (stats provided), and . . .
Which "workers"? Some have become better off because they are more competitive, while others have fallen behind relative to others, because they're less competitive.
. . . and workers were improving their standard of living until a certain political ideology came to the fore, Reaganomics, Thatcher, etc, implementing policies that favour the rich at the expense of ordinary workers.
Until you identify WHICH workers you mean, you're just spewing crybaby rhetoric. Stop putting ALL the proletarians into the same category -- unless you're pretending to be Karl Marx. Until you recognize them as individuals rather than as faceless members of a herd, your rhetoric is no more valid than the Communist Manifesto. The fact is that some workers are better off and others are worse off. Most of the old-style factory workers are worth less today and might be worse off because of their lower value. You can't explain their lower status today unless you also address their lower value, which is the cause of their lower income status.
The policies of free trade and more wage competition have made the more competitive workers better off and some of the less competitive ones worse off. If you cannot address that point, then you are just spewing snake-oil economics.
At which point wages went into decline, stagnating . . .
Only wages of the less competitive. The wages of the more competitive have kept pace or have increased relative to the general population.
. . . stagnating for decades while the beneficiaries of the new regime, tax breaks, loopholes, anti strike laws, low . . .
Competitive workers don't need to organize strikes. They just demand higher compensation or threaten to quit. If they're worth what they demand, they get it, and if they don't get what they demand, it's because they're not worth it.
Some incomes stagnate because the value of the income-earners is stagnating.
But even if some of the tax laws or other policies were wrong and produced some bad results, it does not follow from this that any workers/producers should be paid more than their value as determined by supply-and-demand in the competitive free market. You can't lump all the workers together and pretend that because some of them experienced lower incomes that therefore they were victimized by some bad policies. The main reason some incomes declined is that the value of those workers declined. And their only solution to this, to reverse it, is to improve their performance or their value in the market.
You can't simply assume that all workers must continue to be paid at a certain high level without any decrease ever in their income. Some go down because their value went down. The changing market conditions can reduce their value. You have to face that when you evaluate the changes. They are not entitled to a certain high income as a permanent guaranteed benefit regardless of their changing market value.
. . . while the beneficiaries of the new regime, tax breaks, loopholes, anti strike laws, low awards for workers, etc, enjoyed substantial increases in the salaries and benefits.
Some incomes increased while others decreased. Usually these changes are due to increasing or decreasing value of those workers/producers, not some injustice in the tax policies or other laws.
However, if you can identify certain policies which produced bad results, then those are bad policies. Probably some tax cuts or other changes were bad. This does not change the fact that artificially propping up wages makes us all worse off. When the government artificially props up anyone's income or otherwise interferes with the market prices, it makes the economy worse, regardless of other factors making it better or worse.
If you are right that some policies have rewarded the rich (or some of them) too much, then the solution is to tax those rich at higher rates, and put that revenue into needed infrastructure and into debt reduction or other benefits to society. The solution is not to artificially prop up the wages of the less competitive wage-earners whose value is declining and who are throwing a tantrum and hate employers who are paying them only what they're worth rather than paying them higher out of pity for them. They are not entitled to charity incomes and pity.
It is not that there is insufficient wealth in the developed world, USA, Australia, etc, but that wealth has increasingly concentrated to the upper layers of society. More for the top. Less for the bottom.
Some go up, others down. There's always some "gap" between rich and poor, or gaps, and the inequality sometimes increases, sometimes decreases. No one has proved what the inequality gap should be, or that it has to always decrease.
Come up with solutions other than employer-bashing, or forcing them to provide pity payments to low-value workers. If your diagnosis of the problem is correct, the solution is not to punish employers per se or those who are more competitive, or to disregard the merits of a competitive free market which benefits everyone by getting all producers to improve their performance as the proper route for them to increase their income.
Driven by policy that is designed to benefit the rich while keeping those on the bottom from improving their incomes and their lives.
What you're saying might make some sense if you can identify a "policy" which is preventing "those on the bottom" from improving their performance and making themselves more valuable in the market. But if all you're demanding is to prop up "those on the bottom" who are decreasing in value, by paying them higher out of pity for them, then it would be better to let them continue at "the bottom" where they're paid only what they're worth.
The "policy" should be designed to benefit those "rich" who are earning their higher income by means of their higher performance. If their better performance causes them to become "rich" (or richer), then it's good that they are benefiting as a reward for their better performance.
If you want to tax some of this benefit at a higher rate, this does not violate the competitive free market. The law of supply-and-demand and the principles of rewarding superior performance and more competition does not necessarily mean lower taxes or no tax increases.
This is the situation you promote.
Why can't you name which "policy" you mean? There are many policies -- some of them might resemble what you're describing, but others are rewarding those whose performance is superior, which is a good situation to promote. And a policy is not automatically wrong because it benefits some of the rich or hurts some of the poor.
Any policy which automatically props up the incomes of all wage-earners, regardless of their performance, is a bad situation which makes everyone worse off and should not be promoted. It would be just as bad as a policy which automatically props up the profits of all capitalists regardless of their performance, or of any other category of producers.
E.g., the Bernie Sanders/Donald Trump solution of bringing all the jobs back from China, to prop up labor costs and rewarding some factory workers who don't improve their performance, is the wrong situation to promote. It would force (or is forcing) higher costs onto ALL 330 million Americans, for nothing in return.