But have incomes really been increasing over the last 20 years? My income is essentially the same as it was five years ago (actually less) and I don't have health benefits now as I did then (I contract off and on now). ...though I do have more free time at this point so I suppose you could say this was a willing trade. However, I talk to lots of people who really aren't making more than they were five years ago and have less benefits. To some extent, I suppose this fall in incomes is inevitable given the global pressure on wages. But people in the US now certainly feel that things are less stable than they were a decade ago (less permanent jobs, more temporary or contract jobs).
As far as other ways the US is declining: Well one of the big ones is that we have zero to slightly negative savings rates now. That's not sustainable longterm. Sure our real estate prices have gone up in the last few years, but that's mostly just paper gain (If you sell your house, you still need somewhere to live so if you buy another house you end up paying more anyway).
Phil