Americans seem to have some unfortunate belief that simply by being Americans, they have an entitlement to a high and increasing standard of living. Not true. That might have appeared to be the case for some decades, but they are in for a really unpleasant surprise. An increasingly global economy is a fact, and while the subject is somewhat overworked, it is true that Americans can not expect to be paid handsomely for the same work that Asians are prepared to do at a far lower wage. Neither can companies in India, China, etc., expect to have the ability to continue to pay those low wages forever. There will most likely be some form of a "meeting in the middle" over the coming years with Asian wages rising and American wages falling. That's good news for Asians, but not so great for many Americans.
To a large degree, Americans are living off the legacy of our former free-market, small-government, capitalist economy which was the engine that provided the increasing standard of living Americans used to experience and today's Americans appear to expect. I say former, because we have anything but that anymore. The central government tries to regulate wealth creation while producing no wealth whatsoever. Its main products are rules, failed programs, and aggressive foreign wars. None of these has a positive impact on the prosperity of this nation, and I believe that the "military-industrial complex" that President Eisenhower warned us about may be the most destructive factor of all. In any case, given his military experience he sure should have known all about it. War is unbelievably expensive, and as we've seen, once we get into one the mindset becomes one of "we must have victory so we need to spend whatever is necessary to achieve it." Sounds like a route to national bankruptcy. Imagine what could have been done with the cash we've spent on these wars. And that doesn't even include the social costs to individuals and families.
In any event, downsizing on a family level is going to be the new thing to do, whether we like it or not. An ever improving standard of living comes from private savings and investment, hard work, and a political environment created by a government that doesn't act like business growth will continue no matter what the government might choose to do to impede it. To the degree those things are absent, so also will expanding personal wealth be outside our grasp.
One doesn't have to like the laws of economics, and one may employ the services of those with flawed views to get the answers one desires, but the facts remain the same.
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