The standard of living in USA is mostly economy driven compared to some other social democratic places where the link between the state and the way its citizen live is much stronger.
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Now, this whole economic crisis is going to burn itself out in the next few years and there'll be lots of patting each other on the back for 'fixing' it but the problem will remain because it's not a financial problem it's a global sociological problem that is caused by our own nature. We all want what we don't have, we all want what someone else has, all that finances do is make it easier for us to do this and put away paying for it until a later date.
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Then we should blame ourselves.
Possibly that is the reason why American system works so well by living most responsibility and bill paying in the hands of the people.