Poverty and the growth of government

How did this happen? What happened in the 1970’s to impoverish working people? I suspect the following

The role of politicians and governments in general is to get as many resources as possible without people realizing what they are doing.

Some of the tools politicians use are:

1. Inflation and devaluation of currency
2. Fiat money supply, creating or printing money not part of economic growth, which fuels inflation
3. Reasons to spend more tax money, social welfare systems including so called free health and education
4. Collusive between government and business in massive tax evasion and the creation of economic slavery in less developed countries

Graph of US government growth from 1940 to 2007