It's not like becoming famous back then was easy either. Plenty of good bands never got anywhere. The Mona Lisa wasn't a famous painting until someone stole it in 1911, before that nobody gave damn and now it's the most famous of them all. Survivorship bias and randomness in art is real.
Much of it is farther in the electronica genres that many people somehow still ignore the existence of but I haven't had to listen to the same song twice unless I wanted to in a number of years. Just on my youtube discovery feed right now I got multiple 1+ hour synthwave mixes, EBM/EDM, industrial bass, multiple forms of metal, filk, jungle and DnB, punk rock, old and new jazz styles, and more, 95% of which was made in the last 2 years.
How is that proof of "good music"? That's just background noise.
Maybe the genres people are creating more of don't match your personal preference
Jazz and other music genres in the US came without government welfare, they came from struggle and oppression. Motivated artists will still work part time to fund their dream, they don't necessarily wait for welfare to start making art.
IF you were to give a lot of people free money today, will you get more and higher quality art in return, or will most people just drink and smoke that money while playing videogames at home?
Society, people and the world today are vastly different than back in the 1960s, so we need new polices targeting the society of today, not 1960s policies.