The sad thing is people choose to buy new cars rather than the perfectly functioning old ones and higher quality food. Or people without large families choose bigger houses rather than perfectly acceptable ones that two generations ago couples with 7 kids would fit in.
A very good standard of living in America can be had for well under $20k a year in family spending given smart decisions. The problem is people don't make those smart decisions. Maybe the government needs to step in - or maybe those people prefer their decisions to the ones other people think they should decide.
I chose healthcare and an eight year old car and $100+ in savings a month whereas my similar earning coworker chose a new car payment.
Also people spend lots and lots of money on alcohol I notice - and the % of that spending doesn't change much with income - they just buy higher priced drinks.