But since 1973 it has slowed to an average rate of only 1 percent per year. This is a source of frustration not only for policy-makers and economists, but most notably for workers who have seen their living standards progress more slowly. Average wages and salaries have more or less stagnated since 1973, something they have not done over so long a period since the Civil War. There would be no federal deficit at all at current levels of government spending, but rather a substantial surplus. Taxes have thus become an increasing burden, and a significantly smaller percentage of Americans under 45 now own their own homes.
Economists cite many reasons for the slowdown.
Among them are the increasing stranglehold of government regulations, as well as the decline in education in the U.S. and low rates of savings among Americans.