Over the past 20-30 years, what changes have occurred that now make it necessary for many households to have two incomes to stay afloat?
In: Economics
The simple, actual, ELI5 answer is:
The cost of living (goods, services, housing, ect) has risen faster than the rate of compensation (your wages). That’s it, that’s your answer.
Now WHY this happened is a topic of furious debate and discussion. Many left leaning people, myself included, will point to economic policy changes that enormously favored the wealthy compared to the average person; particularly regulations that were changed under Reagan. Others will point towards the introduction of productivity tools devaluing labor. Some might point out that, once it became viable for two a household to HAVE two incomes (women entering the workforce), it became just as viable for companies to charge more for their goods, maintaining status quo. Some will point towards monetary policy, looking at everything from US spending, to the detachment from the gold standard under nixon. There are tons of factors, but the end result is the same: we don’t make nearly as much more money as we have to spend.
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