No magic. Study after study, shows the biggest predictor of living standards is the price of energy. Any country not pursuing an "all energy" policy with an emphasis on abundant, cheap, and overtime when cost effective renewal energy is impinging on the living standards of its citizens.

The Democratic party today is dominated (not majority comprised of) by progressive liberal elitists that have high incomes and consider the "cost" worth the price, though they don't really feel it, the way the middle class and lower income people do.

Right behind energy is the price housing and food (food is highly tied to energy). Labor prices tend to respond to energy, food, and housing prices, so while a "cost" driver, it is a lagging indicator that the other three of dug deep enough into people's standards of living that they are demanding higher wages to compensate them for the higher cost of the other items.

Now the truth is, there is no reason why energy costs should be higher other than government policies. And without higher energy prices, there is no reason why food should cost more especially with the potential for higher yields than ever before thanks to higher CO2 levels in the air.

Housing costs is largely a function of labor (a bit circular) and most importantly government policy. Houses are three times higher where I live than in other parts of the country because the local government are reluctant to allow areas zoned single family housing to begin to transition to higher density housing. So, you have a shortage of housing. Where housing is in short supply housing prices remain in the historical three to five times historical average family income levels and with more remote jobs available than ever, people should grab those homes and that will lower housing prices everywhere.

California recorded the greatest drop in housing prices in recent history last quarter due to people exiting the results of progressive liberal policies on their lives. As people leave, the housing shortage gets mitigated, and prices fall.

So, for now the age of cheap stuff is over. But the future portends a time when stuff will be so cheap that it will make what we thought was cheap look expensive. What will drive this new age of "Cheap Stuff".

1) Almost unlimited cheap energy

2) The impact of AI on productivity

3) New farming techniques that reduce the cost of food by 50% of more including multi-story urban farms, integrated ranch/farms, increased crop yields in northern areas due to longer growing seasons.

We have an amazing future ahead of us... we just have to grab on and hold on... and most importantly, if you are young... pursue a skill or degree "of the future". Remember many of these "future jobs" don't require expensive college degrees, just some basic skills with tools.

https://www.jobcase.com/articles/highest-paying-blue-collar-jobs