Part 1
Stock prices have been artificially inflated for years. For (almost) decades now quantitative easing money has flowed into bubbles. Fed hands out money to banks, which tends 'invest' it in everything from housing and tech to education, buying up huge sections of the economy in the process.
The bubbles form because there is no real demand, prices are inflated, speculation runs rampant.
Towards the tail end the proles (who imagine themselves the "middle class") are incentivized to participate. When the system inevitably collapses they are left broke and with mountains of debt. Their "property" is sold for a dime and if they are lucky they can start all over.
This process can go on indefinitely as those that facilitate this are not held accountable for their actions. If it appears they might collapse they are propped up or cannibalized by their 'competitors'. They will never fall and the money will only keep flowing.
As a result the national debt increases (Fed money puts all Americans into debt), and taxes are then levied to further 'fund' this system. In reality this is asinine and unnecessary because the fiat money is artificial in the first place. It's not borrowed from the people, it is simply materialized from nothing.
This is one step in facilitating the transfer of wealth from those that have little to those that have much.
Next comes mass immigration, which stagnates wages.
The desperate and newly arrived masses will gladly take up any job (often several in fact, including spouses and children) to stave off poverty. With the advent of information technology local economies are less protected, as jobs can be sought anywhere within the city, state or even country.
"Job security" disappears as a concept. Only those in niches, off the grid or at the very top are able to maintain a comfortable standard of living. Everyone else becomes 'expendable', especially in the face of automation.
Among the top rampant nepotism protects the fortunate, who will not bear the consequences of the loss of job security.
As a result of stagnating wages and the mass influx of artificial money (which outstrips demand and real economic growth), inflation rises.
Median expandable incomes decrease to mere sustenance levels or even below. The former middle class slowly slides into the lower class.
Property ownership falls together with median wealth. Housing becomes unaffordable because their prices are artificially inflated and loans are off limits due to decreasing and insecure incomes.
A runaway effect is produced. Median consumer spending decreases per capita (when accounting for inflation), thus further decreasing demand, thus further obsoleting parts of the workforce, and thus forcing them into unemployment where they will be unable to pay off their debt.
Higher education also becomes off limits. Tuition prices are artificially inflated (in reality most Ivy League universities could be run without tuition fees) so only those at the very top are able to attend. Entrenched nepotism is strengthened further. Those otherwise capable are locked out of opportunities because they do not have access to the power networks.
Those unfortunate enough to have succumbed to loans will find themselves unemployed and crushed by debt if they were unable to find a job or make effective use of (established) networks.
Social security collapses as real economic activity cannot sustain the costs of the mass influx of retirees and the unemployed.
Benefits are cut further to mere sustenance levels. And only to prevent an uprising. Perhaps even abolished.