Why did the animals believe that, inspite of the hardwork and little food, life was better for them now than when Jones was master of the farm?

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Part of the reason why the animals fail to see how similar life is now than it was under Jones is that many of the animals don't even remember Jones.  Time has passed since Jones' time and his image is no longer used to keep the other animals in fear.  With the death of Boxer, most of the old animals that were there at the start of the revolution are no longer there now.  For those dwindling few who do remember Jones, Squealer is always there to remind the animals how things were "worse" under Jones' rule and how things are "better" now.  In this, memory and propaganda have converged to ensure that Napoleon's rule is unquestioned and clearly affirmed.  At the same time, the increase in pigs in the farm, courtesy of Napoleon, do find that life is good for them as all pigs are treated "more equally" than other animals.  With Moses returning to talk of Sugarcandy Mountain, it is evident that the animals have another state sponsored distraction to enable them to not grasp how life now is worse than it was under Jones.  In such a configuration, the animals have little other option than to believe that life is worse.  Those who would dare speak it face public execution, as seen in Chapter seven, making it more likely and more acceptable to remain silent and believe in the propaganda machine which becomes more legitimized with the passage of time on the farm.

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