Wealth inequality has an increased a lot in the last four decades. I’d start there when looking for a source for mental health issues.
https://www.pewresearch.org/social-trends/2020/01/09/trends-...
Inside the US, this sounds wrong both anecdotally and from the data. I'd argue the cost of "living" has gone up quite substantially. Since 1980 rent has risen 140% and incomes 20%[0].
Anecdotally, in the 1970s it was entirely possible to live in an acceptable city or suburb on part-time work, and you could have your own apartment on minimum wage. You might not have nice things but I know many people who spent their 20s very comfortably like this not worrying about how to afford living. (having a family on this budget was not feasible, but that's another thing)
Conversely today I don't know anyone making less than less than 40k/yr who is not constantly stressing about food costs and how they'll make rent.
[0] https://www.realestatewitch.com/rent-to-income-ratio-2022/