Yes I do believe many people live above their means.
However life is much more expensive now. Even just living modestly.
The house prices vs income is at about 7 times now where as our parents generation it was about 3 times. Same goes with everything from petrol to food etc.
Im talking compared to wages. Obviously people earn more now.
It is becoming increasingly difficult to live within your means.
I personally think life was much easier 20 years ago. Where people could actually buy a house and still afford to live to some degree.