Maybe?

I mean, should we live in a world where the only way to create savings is by denying yourself any fun? You've picked a number, $1k, because it sounds good to support your argument, but maybe after paying for the essentials, a family has $200 left per month. Should we expect that family to never go to the movie theater, never go out to a restaurant, never splurge on a nice piece of clothing or jewelry, never do anything fun at all? Do we think it's ok for people to have to live like that?

So sure, maybe if they spend that $200 on fun stuff, it's not "living paycheck to paycheck". But maybe that's just a bad metric, or just too poorly-defined to be a reasonable way to measure anything.