A big factor for previous generations was the lack of good investment options available to everyday people. As far as I can tell, the options for an average Joe wanting to invest but not having a pile of money already were 1. buying individual stocks through a broker or 2. buying garbage high-fee mutual funds through the bank. Now a person can open a low-fee investment account online in about five minutes, often with no minimum balance.
The other big factor was a lack of information. If you wanted to learn the nuts and bolts of building wealth way back then, you'd better have had some rich friends to learn from.
Oh come now, I am old, old enough to be on Medicare and I remember when mutual funds came into being in my young adulthood. My parents sold a couple of family farms and put money in mutual funds. They had plenty of money by the time they died. They were middle class people.
People don’t accumulate assets because they don’t work to accumulate assets.
Mutual funds were a thing in the thirties & did have
very high expenses, so I assume you meant index funds, which came along in the mid-70s as a response to those high expenses - the expense ratio we're used to today is around a
tenth of that revolutionary new "low" rate.
Access to either still required enough money to pay a broker, often handsomely, for
each transaction, on top of the minimum investment principal - which in your family's case involved
having "a couple of family farms" to sell in the first place. I don't intend to mock you, but do you not hear how that's almost a punchline unto itself, in its non-universality?
In the mid-70s about two thirds of homes were owned by occupants, so a third of homes were rentals, & many homeowning families were multigenerational households with several non-homeowning adults. Of the minority of adults who owned any real estate to start with, most owned only their primary residence, generally unable to be sold for investment capital. Those who could hold additional properties that weren't providing either shelter or needed income were already those of substantial privilege. Middle-class earnings maybe, but inheriting substantive wealth, on the upper end of a much larger, more-robust middle class than exists today. About ten years ago two thirds of Americans stood to inherit nothing whatsoever (or debt.)
Real estate was the primary route to saving & growing wealth for most who achieved it. Yet again, women couldn't even get credit without a husband's signature. People of color were pressed hard & overcharged to access real estate without inheriting it; the Fair Housing Act came on the scene in 1968 but enforcement was laughable then & remains dodgy. The experiences of a white male-headed household with land they didn't have to live on, whose neighbors they compared themselves to were probably largely other similar people, can't be generalized to everyone.
Access to market investments is much, much easier today, but there's also been a proliferation of dead-end gig work compounded with poor financial guidance around debt both for the young & for their parents coming out of boom times when less vigilance was needed & a few early life mistakes were recoverable. Many start life with enough debt or hand-to-mouth poverty that they lack the luxury of time to strategize how to seek a better wage before taking on two or more jobs to make ends meet, sometimes before they're out of high school (where courseloads & necessary hours of study have expanded enormously.) Expectations among young white women & both men & women of color are much higher than they used to be; they are educated & want to participate in the economy as fully as white men always have, meaning there's far more qualified competition for a shrinking pool of good jobs, against a backdrop of increasing corporate monopoly making independent businesses unprofitable. Meanwhile, full-time work at federal minimum wage, pretax & with no expenses, can just barely purchase four credit hours of tuition
per month at average price. Real estate near enough to good jobs to be worth living on is increasingly out of reach with those sorts of debt loads & investment properties are increasingly concentrated in major property management companies.
YOUR family displaying merit & success simultaneously does not bespeak a lack of merit in the unsuccessful; in psychology that's called the fundamental attribution error.
I've been told my whole life how exceptional & impressive I am, with all the overwork, credentials, & scores to prove it, but in the end the deciding factor in my favorable position today was
luck: meeting the right person at the right time to get out of the same sort of dead-end job most my similarly-impressive peers had, into one with potential, after a lifetime of relative privileges including middle-class white still-married homeowning parents who could cosign (though not pay) my student debt & put value on my having access to books & education enough to fit in enough with the already-successful. I've seen too many of my intellectual, moral, & skill superiors struggle as hard as I did & founder anyway to assume it was guaranteed. (I've also seen too many rich idiots make otherwise life-ruining mistakes which others raced to pay for on their behalf, either because they are family, or because rich clients are cash cows.) Starting circumstances have largely dictated outcomes. While my anecdotal experience is limited, the hard empirical analysis out there on class mobility in the US corroborates this impression. Wealth was entrenched by race, is entrenched by capital, & is working to further cement itself generationally through education & extracurriculars on an ever-slicker melting iceberg; the recent discussions of the "9.9%" are good reading on this.
No amount of wisdom lets you make make good choices with resources you can't access in the first place.