Whether you like it or not, the truth is that the middle class has been squeezed over the past 30 years, as Elizabeth Warren of Harvard Law and the House Oversight Committee explains in the attached video. it’s almost an hour long, but one of the most fascinating analysis I’ve ever seen with after and in-depth research into what is causing fundamental shifts in spending in the US within the middle class. She touches on the role of women entering the workforce en masse and some definitely surprising findings (we are spending more on housing, but not really getting so much more out of it). Healthcare, food, clothing, etc.
I would remind readers, though, that predicting is a difficult art to perfect. As Elizabeth herself states, she would have herself been surprised by the outcome of the pressures. In the same way, “collapse” is probably a misnomer. We will adjust, but with a quite different set of priorities. Technology has improved many parts of our lives; but has contributed little to our happiness. Our ancestors would probably be surprised how little we do with our large amount of spare time, but surprised at how hard much stress our daily lives entail; which is probably the biggest toll that the housing bubble has had on America; the human cost is much greater than the monetary cost, especially considering that our children and grandchildren will pay dearly for our stupidity over the past 5 years.
We have witnessed the peak in American prosperity. From here there are only contracting living standards ahead. Poof goes the middle class!