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The Fallout from Falling US Wages
Continue to the storyStagnant or falling real wages undermine workers' basic expectations of rising levels of consumption. Those expectations had become key parts of what it meant to be "an American." Rising consumption has long functioned as the evidence of success in achieving the American dream. When, after the mid-1970s, real wages no longer allowed for rising consumption, wage-earners turned, with growing urgency, toward other ways and means to maintain rising consumption . This delayed the inevitable, a falling standard of living, but at great economic and social cost.