Money can buy happiness if you know how to use it. You don't have to spend it on luxury goods.
Life was not really better back then. I grew up with a lot of neighbors working 7 days a week raising 4-5 children, not having enough saved for retirements, never took vacations, working from 9am to 9pm, etc. Many had health problems due to ergonomics injuries or look way beyond their ages due to stress.
Sure things were "cheaper" back then but you also make less. The only people I know who grew up with a very comfortable lifestyle back then were from upper middle class in a very unequal job market, where blue collar jobs get paid like 1/2 of white collar jobs. These days many white collar jobs get paid less than the blue collar jobs because how hard they are, but many only remember the "good ole days" because they could just get into college for any degree and there will be a high paying white collar jobs waiting for them. Now you really have to "earn" it.