It's all about perspective. Even the poor in developed nations have a much higher standard of living than the poor in developing nations. Most people only compare their situation with the situation of others in the same country/culture. So it's tough for most people to objectively say that they are doing well and would rather spend their limited money for a more expensive version of the same item. You also have human nature, where most people live nearly at their means, or even beyond them, rather than within them.

I guess I'm basically saying there tends to exist a lot of scope creep in each individual's definition of when local and basic concern have been met.