A long time ago, I had to take an ethics class to get my Computer Science degree. One of the things that came up in the papers about calculating the statistical value of a life was that people care more about being more prosperous than their peers than absolute material wealth.

I think about that a lot: its not about material wealth, but status, something that if someone has more of you have less of. A lot of people are invested in their status in various communities, and are afraid to lose it or have it become meaningless.

I don't know what to do about that; no matter how wealthy we all are people are still going to want status.

Well yes. That's why you see many westerners complaining about the cost of living even though all things told they have a good life.

I would modify this slightly though. I think there's an expectation of things getting better, and expecting to do better than your parents. I think that's where many of the modern issues around living standards come from. They aren't getting better (quickly enough).