Wages stopped going up in 1973. Actually, they peaked in January, 1973. Had they continued to go up as they should have, the average wage would be about $90,000 a year.
First, immigration policies were liberalized in 1965, allowing millions of 85 IQ immigrants into the U.S. This did not add productive capacity to the country; it damaged it severely.
Second, Richard Nixon went off of the gold standard in 1971, allowing the thoroughly unconstitutional Federal Reserve Bank to inflate without any brakes, since the paper dollar was completely unhooked from gold.
By the way, the Federal Reserve Bank is not federal, had no reserves, and is not a bank. It is a legal counterfeiter that has seized control of our money supply, allowing it to print money to its heart's content.
The Constitution clearly states only gold and silver can be money. For that matter, it forbids "Bills of Credit" (another name for "paper money").
Contrary to the delusions of the half-educated and quarter-witted, the Founding Fathers knew what they were doing.
Things didn't get all that bad with inflation until Alan Greenspan (whom I've heard described as the "biggest asshole in the universe") became head of the Fed and spent 20 years destroying the dollar. Bernanke is completing the task.
One of the things inflation does is transfer money from everyone to the wealthy, since the wealthy get the inflated money first and can buy everything first.
I've heard the super-rich referred to as the "extractive elites" and that's exactly what they are. Today they are commonly referred to as the 1% that exploits the 99%. It's an oversimplification, but not that much.
When these extractive elites are not punished, as they are not being punished today, that is a sign the country is on its way to collapse.
Another thing that happened about 1974 is the oil crisis, caused by the oil nations in the Mideast conspiring against us for supporting Israel.
Unbelievable. We cut our throats supporting a country that slaughtered our sailers during its attack on the Liberty.
Since those days, we have sent trillions of dollars to our enemies in the Mideast for their oil. That money should have stayed here and added to our productive capacity, resulting in higher wages.
Back in the '50s the annual growth rate was about 4% a year. Now we are down to an anemic 2.25%. This loss of productivity is due to government crushing the economy with inflation, regulations, destructive laws, etc.
Had we maintained a '50s growth rate of 4% that alone would have made the average salary about $90,000 year. Take away the rest of the crushing burdens, and I've seen some economists estimate it would be about $100,000 a year.
We've also sent trillions of dollars to our enemies in China, hollowing out our industry. Those who think this is a good thing do not understand basic economics.
What all of this means is that if someone cannot make a decent living these days, it is not their fault, no matter what the chattering classes say. Certainly many intelligent people can make a good living -- those with IQs of about 120, which is less than ten percent of the population.
The average IQ is 100. People with such IQs aren't even going to be high school graduates. They are going to be janitors with welfare benefits.
I do not believe some sort of collapse is all that far away. All you have to do is look what is happening with those in this country who have reverted to barbarism.
This is not the same country it used to be. Not even close.
Bill Bryson has written a book, The Life and Times of the Thunderbolt Kid, about his growing up in Des Moines, Iowa during the '50s. I didn't recognize the country he wrote about. It didn't merely sound wonderful -- it was wonderful. And, again, this was when the growth rate was 4%.
For that matter, think about what California was during the early '60s. Annette and Frankie and and beach parties, followed by the Beach Boys and their hot rods. The state used to be the American Dream.
Now it's the American nightmare. Everyone who can afford it is leaving the state. And we've got Paris Hilton and Britney Spears instead of Frankie and Annette..
This downhill side cannot continue. There will be an economic collapse, as has always happened in the past. The only question is when.
Your post has an error. The oil shortage in the 1970's was not caused by an Arab boycott, as commonly believed.
There was a price control on oil and gasoline. There was a limit to the price per gallon. There was inflation, but producers were not allowed to raise prices, leading to inflation.
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