I jumped in to make a side point. I agree with you but in my case my observations are due to living on both continents. I've moved back and forth a few times. Last time I moved back to the USA because I felt like the salaries were so much higher and the taxes so much lower. I can tell you that's not the case anymore. A lot of this has to do with unemployment and the way the US skews the numbers. Our unemployment numbers are so high that employers are able to drive salaries into the ground. If you've been job searching or are looking for an employee the amount of applicants is staggering and this is emboldening employers to get more for less.
Being better off is a subjective thing. Better off how? Some people measure their standard of living simply off the balance in their bank account. In that case it is tough to argue against the standard being higher in the states. However if you have a different value system that involves a few more things such as the ones I listed above you might come to a different conclusion. I have friends who get 2.5 months of paid vacation. To some that might tip the scales heavily in favor of them having a higher standard of living.
I should add something to my list above. Something that I am struggling to completely understand after my last stay in Europe...they seem to be utilizing technology better. They have better internet, environmental standards and gas mileage, better mobile communication networks, etc. I don't understand why we have fallen behind.