Numerous sources of data about family incomes, taxes, wages, unemployment, wealth, and poverty were used to analyze the impact of the economy on living standards in the United States in 1994-1995. It was discovered that most individuals in the United States are worse off in the 1990s than they were at the end of the 1970s. Between 1979 and 1989, family income grew more slowly than in any other business cycle since World War II. Despite recent progressive changes in tax laws, the federal tax system has continued to favor wealthy families. Most people are working longer for less. Underemployment is worsening, and the continued rise of part-time and temporary employment has triggered long-term erosion in economic security, benefits, wages, and opportunities for training and advancement. Rapid increases in the value of financial assets coupled with stagnation of the value of tangible assets has further increased the gap between the upper and middle classes. Poverty rates have remained high and unresponsive to economic expansion, and health care expenditures have continued to increase without any concomitant increase in health outcomes. Among developed countries, the United States is falling behind in productivity and wage growth. (Contains 303 taables/figures and 160 references.) (MN)