There was a similar thread over on the redboard and I'll repeat what I posted over there:
Everyone talks about costs. While I do think that buy in costs do affect the industry, I don't think it's to the level everyone assumes.
There's been an overall demographic shift away from aviation, and even if you had 1965 costs adjusted for inflation, it wouldn't make any meaningful change in the number of people who participate simply because people have far less disposable income and time now than they did.
You might pick some up in the margins, but there are so many other costs of living that are competing for the almighty dollar these days vs the mid 60s, that even with inflation-only cost increases, you are fighting a losing battle against health care, child care, self-funding the retirement, maintaining the McMansion, college expenses, 2 SUVs, cable TV, cellphones for the whole family, heavily scripted and costly activities for the kids (plus bottled water vs water from the hose) and the list goes on and on.
"Productivity" in the US has been on a bender since the late 1980s...and while that's good for business owners, it's bad for employees because they're working more/harder, which means less time in life for everything else. People are constantly doing work on their own time, because if they don't, they get "left behind" by the insane productivity cycle we've created. Futzing with airplanes at the airport is not very family friendly, and because two parents usually work these days, what spare time is left over is dedicated to "family time".
More so than the lack of money, it's a lack of time.
Time is the precious resource these days. Most people, even in the upper middle class, are in a mad scramble to maintain their life-style. The only people who I see who aren't in a frenzy have some kind of paid defined benefit retirement along with paid health care and usually no kids.
The people who have the time these days, generally have the money to participate, because they're doing well enough to have spare time. Want to know why a 182 costs half a mil? Because that's the demographic that has the time.
Like the song says "no time for my watch and chain". The LSAs failed because of this. Sure, they were expensive for what you got, but it still takes the same amount of time. Which most people don't have these days.
Richman