How is everyone I know buying houses and going on vacations and going out all the time,
Two things. First, it’s not the dystopian nightmare you think it is. As you note, social media is making it worse.
Second is a lot of people live beyond their means, or are getting help from family to buy these things.
when my yearly raises haven’t kept up with inflation for 8 years now?
Should have started looking for a job 5 years ago. If you did and couldn’t find anything, that explains why they feel comfortable not giving you an actual raise. If you haven’t, best time to start is right now.