When wages fell, slowly and over time, families did not lower their expectations for living standards. These expectations further ensured the need for two working family members, otherwise these expectations would be near impossible to meet for most couples and families. We see that the Women's Lib movement created the need for two working family members, and even a minimal level of economic theory would easily predict such an occurance. The effect of this flood of women into the workplace was quite different for firms and the overall economy. Firms loved having two workers for the price of one, they were able to increase production with out substantial increases in costs, maybe only some initial capital improvements.
Increased production is a boon for any economy.
The nation's economy has been on a flight to the moon since then, when viewed over the long-term. Government revenues increased accordingly. Well, that depends on who you are. If you are a Liberal you would prefer to use the added revenue increase government spending on social programs, but if you are a Conservative you would likely give the money back to the taxpayers in the form of a tax cut. Liberals because it means they can created more social programs, Conservatives merely give the money back.