I don't know about you, but I think most people would say they have a higher standard of living than X years in the past.
"... most people..."
Besides income and expenses, you have borrowing. So, are you better off because you have more things? How's your net worth? Going down? Going up?
That's really what matters. Since the easy credit is going away then having more things becomes elusive. Paying the debts can be a very long process. Is that the standard of living?