> The nominal wage has increased since the early 70s, but the purchasing power of that nominal wage has gone down faster than the increase. This is policy, not capitalism.

Which option would you prefer? (1) You have a 70s real wage, but can only purchase goods and services that were available in the 70s, or (2) You have a 2016 real wage and you can purchase all goods and services available today. Keep in mind that real wages have stayed roughly constant since 1970.

Most people I know will pick option (2), which suggests that purchasing power has in fact increased rather than decreased. Technology is improving and everything is becoming cheaper, bringing up our standard of living.

Here are some facts about Americans living in poverty, according to the Census Bureau [1]: 80% of households below the poverty level have cell phones. 96% have a television and 83% have a DVR. 97% have refrigerators, 96% have stoves, 93% microwaves, and more than 83% have air conditioning. 58% have computers. If you had to choose, would you prefer to live in poverty today in 2016, or would you prefer to live in poverty in 1970? How about 1900 or 1800? How does the standard of living in poverty compare to any other time in history? An American living in poverty today probably has a better standard of living than a typical king did in centuries past.

[1] http://www.census.gov/hhes/well-being/publications/extended-...