Winemaker
Thinks s/he gets paid by the post
As I also noted in my post (although perhaps not clearly enough), people's expectations for living standards increased at a faster rate than their incomes, which for most households actually have been flat for the last 30 years in real terms.U.S. Household Incomes: A 47-Year Perspective - dshort - Advisor Perspectives
I doubt that most people today would accept the way we lived when we were young children. If they did, yes, they would have more money to save. But they don't, and I don't think we'll be able to jawbone them into changing their minds anytime soon.
While all this is very true, the US went through a major shift in lifestyle in the late '70's. Whether it was for independence, equality, economics, or whatever, a larger percentage of women entered the workforce and were no longer many stay-a-home moms. This has created a HUGE monetary cost for society.
Higher incomes have forced families into higher tax brackets. Taxes increased. Families needed child care options; originally some families had grandma or a neighbor watch the kids. Then regulations were demanded after the need escalated and much needed government subsidies were available. Costs increased. Mom needed a car and a wardrobe. Costs increased. School breakfast programs became mandatory after kids weren't getting fed because of poverty, or parents weren't home to feed them. Etc. Etc.
My DS and DIL pay over $10,000 for one kid alone in annual daycare; they just had their second. DW and I would cherish watching them for the day, but they're on the other side of country. They both have great professional jobs, but the costs is staggering. I'm not even going to mention HUMAN cost.