Democratisation of music through the internet and easier means to record have meant more music available.
However people look back on things with too much nostalgia and the music has to be good or memorable to stay in the minds while the dreck gets left behind. There are a shit ton of mediocre and terrible bands from the 70s and 80s and once they are not contemporary enough they disappear from radio playlists. Going to a vintage record store or an oldies music station skews the representation of the past having a higher proportion of good music.
Edit: Unfortunately for some of us (me too when I'm not trying hard enough) we give up on looking for new music that excites us and that's when you revert into a cocoon of the things we know and start saying "In my day we didn't have shit like Bieber" when we forget we had people like The Cartoons and Aqua.
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