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Here's the whole story in a nutshell.
WW2. Government imposes strict wage and price controls and pushes unions. Capital falls in line because they are makign money hand over fist.
Post WW2 the USA keeps a lot of FDR's New Deal policies in place and everyone is doing great. In 1960, minimum wage was $1.00/hour and the price of the average home was $11,000.00. Unions are strong and college is cheap.
1968, Nixon becomes President. Says he wants peace, but increases the War spending using LBJ's print money plan. Inflation is now a thing.
1970s Oil Embargo really devastates the economy. Prices skyrocket and inflation is getting worse.
Before Reagan is elected, Middle Class is defined as one income supporting a family of four. $1 million is a vast fortune.
By the time Bush Sr. leaves office, 'middle class' is two incomes, and $1 million is what a rich guy pays for a party.
Further, the prosperity of past generations was in the wake of WWII and destroyed economies around the world. The US was virtually untouched and had a boom-time that is unrealistic under any other circumstances. The US literally started on third base and our parents or grandparents thought they hit a triple.
I didn't get into it in my nutshell, but Nixon's Vietnam policy had a bonus. Because we were making so many bombs, the US steel mills couldn't keep up with the demand from Japan and Germany. they ended up building their own plants, plants that were much more modern and used less energy. When the Oil Boycott hit, the cheap foreign cars were in high demand and Detroit was left scrambling. After the Vietnam War ended, the US had old, worn out infrastructure in the 'Rust Belt.'