To be clear, that is according to the definition you've made up. The commonly understood definition includes many or most of peoples' desires. Travel, housing, vacations, iphones, advanced health care, entertainment, higher education, etc.
> I think we are actually there, but have induced a scarcity economy with extreme imbalances and fake incentives to toil for toils sake.
Even in western countries, millions of people are struggling with basic costs of housing, energy, and even food. I mean people who actually work many hours every day and earn money are struggling with these things. We seem to be a long way off it even for your "basic necessities" definition.
https://en.m.wikipedia.org/wiki/Post-scarcity_economy
To your point, they do. However I’d assert that’s mostly due to income inequality and false scarcity to induce labor for labors sake.
And I'd assert it's not mostly due to income inequality.
The artist will make art without reward. They always have. But few can do it for a living. Fewer will in this next phase.