Earlier quoted context omitted.
No, we're not. It just seems like there's excess because the costs of running social programs are being paid with runaway debt. Those bills will eventually require settling, and it will become obvious how much excess there really is.
Debt is just accounting, and has nothing to do with whether or not a surplus exists and who gets to consume it. The surplus exists, it doesn't magically appear because of your accounting system.
It also allows us to characterize and understand how the capability to generate surplus has been distributed etc etc.
There is no single lump of goods and services, or a single lump of surplus. There is an economic problem of ensuring such are created in surplus and distributed to those who need them. A surplus of lawn mowing and shopping services (such as disability welfare has created in my country) could easily be accompanied by a shortage in housing. In fact one could be caused by the other.
The economy has capacity today and surplus from yesterday. Beyond that takes vigilance and accountability to maintain the system.
The fundamental question is why exactly you think a system can have some fundamental governing and observation mechanism such as debt (or equity accounting) removed and it would still maintain the same system characteristics that produce said surplus?
This is basic engineering and system architecture 101 and I would expect technologists to have more than a surface level expectation that systems do not operate magically nor label components as redundant without detailed reasoning.