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> some hard labor,manual work or low level trade jobs

That kind of work is still valued, just less so than before. It makes sense to supplement low incomes with UBI or negative income tax, so that no one is denied a tolerably comfortable life. Our social safety nets are totally unfit for the present world, they're still built for the assumption that high-paying manual work is everywhere.

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I don't disagree with your sentiment at all.

How would you reduce the polarization of the population between upper and lower classes?

The fact that a person in a lower economic class has a livable wage will solve many problems. Home ownership, affording a family and health care will east most economic friction. As far as social polarizarion, I think that's an entirely different topic,two people of high income can be socially and politically polarized for non-economical reasons.

I would suggest that a stable housing situation and outlook (even if not owned) might be sufficient on the housing side. Part of the renting problem in the US isn't the ownership arrangement, but rather the precariousness.

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