Why did the lifestyle of US middleclass declinesince the escalation of the vietnam war in the 60s?

Question

(US economy after WW2 and the middleclass)

Answer 1

The median real wage in the US has been nearly constant since the early 1970's, with a brief uptick in the late 90's, but there is no agreement among economist as to why. The candidates are
Increasing trade
Increasing immigration
Increase in the work force due to the coming of age of the baby boomers and an increase in the number of working women
New technology lowered the value of low skill workers and increased the value of a college education
Government policies on Unions and taxes and deficits
Monetary policy by the fed that kept unemployment "high during most of the period.
In any case the problems started with the increase in inflation of the late 60's and the oil embargo in 1973 along with high oil prices for the rest of the decade. However when oil prices fell in the 80's and inflation was gotten under control the gains in the economy went to the top half with most going to the top 20%. Some economist now think that the gains in wages in the 20 years following WWII was an aberation and only government policies to flatten the distribution such as exist in Europe will prevent the return of the situation that existed prior to the 1930's.
http://www.visualizingeconomics.com/2007/06/15/nytimes-calculating-americas-wealth/

Answer 2

Wars can be managed or mismanaged. World War Two was managed. Top Economist were given authority to map out a system that amped up America's industrial production with 'modeate' inflation. Since America blundered into the Vietnam War it had less time to work out a way to delay the inevitable cost of war. And America had just enjoyed a prosperous, more than less decade - - - - the economic down turns of the late fifties and early sixties were nothing compared to what their parents endured during the 1930's.

And Americans were demanding more. Whereas an American in 1948 might be o-k with a radio and a one room flat with no comforts aside from bed and chair, not even a FAN (watch old movies ). By the late 1960s Americans expected what has remained the new Ten Commandments//
1) Thou Shalt Have a House or Apartment or at least a dingy cockroast infested room but in any case a place you call home, 2) Thou Shalt have A Personal Vehicle (during the late 50's many municipal bus systems collapse as Amercans went on a vehicle buying frenzy), 3) Thou Shalt have Cheap Gasoline to Fuel Your Personal Vehicle..... And etc..

Suddenly, or so it seems when people don't pay attention, by 1969 but especially 1970 through pretty much the entire decade, Inflation HIT. Suddenly the price of Gasoline jumped to a Dollar and threatened to go Higher. Banks started bullying the customers demanding higher fees for services - - - with a war raging in Vietnam expect sacrifices.
Mortgages and interest on loans climbed into the twenties%.
Day to day expenses doubled nearly trippled,

Suddenly Dad couldn't get a new car every year and Mom had to stop treating her children to McDs - - - back to baloney & cheese sandwiches, kiddies.

Inflation always affects the middle classes more than the masses. In the little things. In having to ride a bus instead of driving one's own car. When friends find out they get hostile, during the 70's the question "why ya riding the bus" were fighting words. And Middle Class homes in the pre-ome depot days relied on professionals to stay spiffy. During the inflationairy 70's such services were no longer affordable so many an upscale neighborhood took on a dismal air as repairs to paint & fences & roofs went undone.

Peace...