When I started my first real job I made sure to come in first, work more hours than anyone and strive for perfection in my work. Managers would fight over having me on their projects.
Then I got the same raise as anyone above average. My boss said it’s to prevent jealousy within the team and upper management looks down upon any raises far above average. I later learned it was almost impossible to be promoted due to the same issues. After that I only worked just slightly harder than my closest competition. Why bother?
Also remember that back then it was possible to be upper-middle class and save a good amount for retirement with an average white-collar job. I bought my first home at 23 (in NYC!). Today we have kids working their a**es off doing the same thing I did who can’t even afford the smallest home due to sky-high expenses. Sometimes even with two incomes. Eventually they’ll realize “Why bother working your a** off for a small apartment and crappy food when the government will give it to you for free?”
Yes, I came to that realization a long time ago. I had a decent salaried job, no wife and kids, so my expenses were minimal, no debt, and was getting my apartment for about half price, but still, on my income, buying even a small home was next to impossible. If I saved for 10 years so I could make a 50% downpayment, I could do it, but otherwise, forget it.
So, not only is there not much motivation from the jobs nowadays to work hard, there is not even much of a goal to shoot for if you want to work hard. I could move to another area where homes are cheaper and buy one pretty much outright at this point, but that would mean giving up a steady job for no certainty of a paycheck, so that doesn’t work for someone far from retirement age.