Haven't median real wages in developed countries dropped since the 1970s or so (even more so if you include housing costs in your inflation number)? The world as a whole may be better off, but that's cold comfort when your future in your country looks worse than your parents'.
Median real total employee compensation in the US has increased significantly since with 1970s once you account for non-wage benefits like employer-funded health insurance premiums and retirement plans. (I am not familiar with the data for other developed countries.)
If the reason people are getting paid less is that health insurance has gotten more expensive then that's interesting and relevant as an explanation, but hardly refutes the idea that their lives are getting worse.
