Think you missed pointing out a bigger culprit: gov’t and taxes.
It wasn’t that long ago that one person in the household could make a living, pay the bills and still allow a good bit left over for living a good life. Mixed in, was the other parent, who was able to take up the maintenance of the household and watch/teach their children.
No more. These days, couples have kids and ship them off to daycare and schools without having the time; let alone funds, to properly raise their own.
The highlighted portion is the most important part to your comment. How do you define "a good life?" Is it having a house? A car for each adult? Enough money to eat out at a restaurant a few times a week? How about a boat? Yearly vacations? A motorcycle?
The problem isn't government or taxes, at least not the overwhelming part of the problem. The problem, as I see it, is the excessive value we place on "things."
Materialism was no where near as crazy as it is today. People value themselves based on their possessions and not their value as people or a family. As a result, we've lost what's truly important: God and family.
My wife and I could very easily live on just my salary, but since we don't have kids and are having trouble conceiving, it might not be necessary for us to be concerned with a home life. If kids come around, the conversation will happen, but until then, we're just stockpiling cash for any eventuality.
People no longer view income or wealth as savings. They view it as "things."