Edit: Changed title to be more accurate.
Also here is the summary from Wikipedia on what Post-scarcity means:
Post-scarcity is a theoretical economic situation in which most goods can be produced in great abundance with minimal human labor needed, so that they become available to all very cheaply or even freely. Post-scarcity does not mean that scarcity has been eliminated for all goods and services but that all people can easily have their basic survival needs met along with some significant proportion of their desires for goods and services. Writers on the topic often emphasize that some commodities will remain scarce in a post-scarcity society.
Part of the reason Capitalism sort if worked in the 60’s was because it had to globally compete with communism. We seem to forget how hard the red scare had to be pushed to silence the growing American Communist constituency.
Wages were high for low education workers because they had to be to stave off the communist political movement.
The second the Soviets collapsed, capitalism started its more evident decline. Capitalism only works with competition, even from a meta perspective.