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The decade brought gains in living standards to most families, but these gains were not distributed evenly; the rich grew richer, but the poor grew poorer.\n\nFamilies with limited access to the labour market--the young, the unemployed, the less educated--were left behind in the earnings-driven income growth of the 1980s. The 1980s and 1990s saw considerable change and there was evidence of rising living standards in terms of consumer spending credit and policies which helped higher earners. However, there was also an increase in income inequality so the extent to which standards improved as a whole can be debated. Tax reforms in the Reagan era disproportionately benefited the better off while many on lower incomes experienced wage stagnation, particularly as union power declined.\n\nCompared with earlier decades economic mobility was less marked. 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After the recessions of 1980 and 1981–82, family income in the United States expanded through most of the 1980s. The decade brought gains in living standards to most families, but these gains were not distributed evenly; the rich grew richer, but the poor grew poorer.

Families with limited access to the labour market--the young, the unemployed, the less educated--were left behind in the earnings-driven income growth of the 1980s. The 1980s and 1990s saw considerable change and there was evidence of rising living standards in terms of consumer spending credit and policies which helped higher earners. However, there was also an increase in income inequality so the extent to which standards improved as a whole can be debated. Tax reforms in the Reagan era disproportionately benefited the better off while many on lower incomes experienced wage stagnation, particularly as union power declined.

Compared with earlier decades economic mobility was less marked. However, the change in consumerism did see major change with more consumption influenced by credit and advertising and more advanced technology. The widespread growth of home electronics and computing changed the way of life for many. Standards of living in terms of the consumption of consumer products, better cars, more holidays, a bigger range of food were changed by an interest in credit and borrowing. The greater use of credit cards changed expectations about having to wait for higher standards of living. It also increased consumer debt. The fall in interest rates and the costs of borrowing by the later 80s boosted spending. However the sustained increase depended on the sector of the economy in which people worked.

The US was facing the impact of globalisation with cheap outsourcing and foreign competition hitting jobs. The gap between services and manufacturing widened. Technology offered a range of new jobs but also led to job losses so had both positive and negative effects on living standards. The gap between high skilled urban workers and traditional rural areas widened. But even in developing urban areas the rising cost of housing affected living standards. Often rising living standards required families to have both parents working so material gains might be tempered by more stress and less quality of life.

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Assess how far US living standards changed in the 1980s and early 1990s.

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