life already sucks enough as it is, and is entirely too complex in so many aspects that no longer having the "can i afford to not die in an emergency" thought would be such a huge net plus for a huge majority of working americans.
second reason, middle class can't get savings any more. savings are essential for a wealth of reason, including starting a family, a business, investing in property or other people ideas. these are all essential for growing a solid economy long run.
angel and VC money works as a surrogate but it goes only so far as it aligns with the 1% incentives; it burns as much as it elevates, maybe even more, and is more of a way to extract money from growing SMB instead of a way to build a wealthy middle class, as they only play for the exit.