I think many people missed the point. For so long the ideal had been to get that six figure income and they you can have "all that" or at least quit stressing about everything financial. We were told for so long that if you do the right things and achieve a stated level life will then suddenly get easier.

Sure there are people who live WAY beyond their means and spend large sums of money on things they don't need to be. But the reality is that the cost of everything has gone up while wages have been stagnant for about the last 10 years. Work benefits and insurance benefits have also eroded. You used to get two weeks vacation and 1-2 weeks of sick leave. Now many people get only 2 weeks of PTO. This means if you have a family emergency or young kids who get sick frequently your not getting a vacation for about four years. Health insurance has eroded too. I remember the days of no copays and full coverage with no co-insurance. I didn't even have to pay for my health insurance a couple of places. Now it is our second largest expense, just for our insurance, that doesn't even include out of pocket.

The cost of everything has gone up. In the last 10 years where we currently are the cost of a basic starter home has gone up about $50,000 more. Gas is double, electricity is double, groceries are easily double and have gone up about 20% or more in the last year.

People were given an illusion that we were not losing relative wealth for the last decade. General consumables like TVs, small appliances and gadgets have come down in price by tossing out quality and places like Walmart squeezing manufacturers. Sure you can get a $6 toaster but it is a piece of junk. You might be able to still get a pair of $20 jeans but they might be junk too. Credit was everywhere so as your wages were whithering you could still feel financially ok.

Well now all of this is coming together and coming home to roost. Wages are starting to show their real relative worth and credit is drying up.