I also started out with a roommate when I had my first computing job, which was with a massive multinational. I could not have afforded my own apartment in Cambridge (UK), though that was caused by post-grad student debt than the salary level. I went on to rent a house with someone else until I emigrated to the US.
The fact that there are actually multiple pathways through life doesn't mean that we can't, as a society, draw up our own guidelines for what working for 40hrs a week ought to make possible, even if some people choose to (a) not work 40hrs a week (b) live differently.
Total government revenue as a percentage of GDP has been remarkably flat since the end of WWII (actually distressing to my preferred narrative in which it has declined and should not have).
I had a roommate when I started out and could not afford an apartment. At the time one could also rent someone's spare bedroom. Government zoning also got rid of boarding houses.
> haven't kept up with things
The increasing share of the economy that the government vacuums up comes from somewhere.