Could it be that a lot of two income households became one income households, and decided they liked that better? Once you add up commuting, child care, clothing, and other work related costs, a low paying McJob becomes a lot less “worth it”.
Good point. I expect that’s a non-negligible factor.
This is classic Carter era stuff.
Once inflation kicks in there is an urgency to find a job that pays more.
Where there are unions that means strikes.
In low paying jobs that means lots of folks try to figure out a way to improve their careers.
Meanwhile consumers “trade down” their spending to try to keep up with the inflation. That means less or less fancy vacations, less or less fancy restaurants, grocery buying, clothes buying etc.
As a result the employers cannot afford to pay the higher wages.
How soon everyone forgets...
I think you’re right. Less income but also lower expenses. I suspect more families are doing less expensive travelling due to closures and restrictions, more “stay-cations”, and not buying new cars (because there aren’t any to buy), eating out less, etc.
Might be tough for those who over-extended themselves with big mortgages but I suspect most lenders are happy to re-fin rather than end up owning houses nobody can afford.
Add in COVID bennies and former two income homes have not suffered a standard of living change in becoming a one income home.
I witness that and retirements of people who could have retired years ago but had stayed working up until the COVID nonsense started.