This is not true. Look at median household income in FRED. It is unequivocally up for everyone across the board.

Inequality has increased but it’s no longer clear that it’s as severe an increase as Piketty and Saez once argued. So, yes, things could certainly be much better. The US could, for example, benefit from a more progressive taxation and a stronger social safety net. But at the same time, we aren’t all headed to hell.

Household income isnt really representative while cost of living is increasing faster than income.

If I make 100 tokens and that buys me 100 food, thats better than making 1000 tokens that buys me 1 food.