So what do you see as the solution?
Do you think the poor and middle class has shrunk all because of the cost of goods and services?
Please bear in mind I am a newbie to this politics stuff.
Where to begin? Well first, I appreciate your interest. You and I have something in common. I spent most of my life uninterested in politics, economics, and most social issues. Only got really interested a couple decades ago, and that's when I began buying books and magazines, subscribing to newspapers, and in general gradually and sometimes painfully educating myself on what has been going on. So, we have that much in common.
As I see it, the core problem is the vast and growing gap between 'the richest and the rest'. In my opinion, it amounts to a grave threat to our democracy -- and indeed, it has been undermining it for at least 40 years. I wouldn't mind at all someone having 100 billion dollars and me having 100 dollars were it not for the fact the billionaire is highly likely to use some of that money to, in effect, buy my government, and shape its laws, regulations, and policies to favor them -- often at my expense.
Having said that, there is no one solution to the problem. If and when the problem is solved, it will be by a combination of things, rather than by any one thing. Moreover, the 'solution' will only be temporary -- the battle is ongoing and will never end.
So of the hundreds of things that could be done to improve the situation, here are three that would most likely help....
Universal health care -- this would have numerous benefits, such as allow small business people to compete on a more level playing field with large corporations and billionaires for talented workers. Right now, small business people often cannot afford to provide health insurance to their people, consequently, they have a hard time attracting superior talent. There are many other benefits to UHC that would help close the gap between the richest and the rest.
Ample daycare -- Poorer families with small children find it exceedingly difficult to get ahead when one parent's ability to work for an income is constrained by the necessity of looking after the kid or kids.
Universal Basic Income -- This is coming sooner or later to every industrialized nation on earth, though America will most likely be among the last to adopt it. The reason is that robots and artificial intelligences are replacing workers at accelerating rates. Within 20 years, most estimates place unemployment at or near Great Depression levels, no matter what else happens. Basically, a robot will be doing the job rather than a human. Apparently, the way out is some kind of universal basic income that was high enough people would not starve to death, could keep a roof over their heads, and clothes on their back, but not so high as to be unsustainable. Bill Gates has recommended taxing robots to pay for it. I think that's a good idea. A UBI would lessen the gap between the richest and the rest in several ways.
So -- that's three "solutions". There are hundreds, great and small. But they need to be implemented. And so far, not much is being done.