Standard of living

“How well or poor a country is:

Indicators of Standard of Living

Source: https://www.youtube.com/watch?v=ZeuUIP0dobw

 Literacy Rate – percentage of people that can read and write over the age of 18
 Life expectancy
 Infant mortality rate – how many infants passed away
 Doctors per 10,000 population – health
 Cars per 1,000 people

 Other factors commonly associated with the standard of living include:

(https://www.investopedia.com/articles/financial-theory/08/standard-of-living-quality-of-
life.asp)
 Class disparity
 Poverty rate
 Quality and affordability of housing
 Hours of work required to purchase necessities
 Gross domestic product (GDP)
 Affordable access to quality healthcare
 Quality and availability of education
 Incidence of disease
 Infrastructure
 National economic growth
 Economic and political stability
 Political and religious freedom
 Environmental quality
 Climate
 Safety
 One measure of standard of living is the Human Development Index (HDI), developed by the
United Nations in 1990. It considers life expectancy at birth, adult literacy rates and per
capita GDP to measure a country's level of development.
(https://www.investopedia.com/articles/financial-theory/08/standard-of-living-quality-of-
life.asp)


Questions posed for Standard of Living

Are you satisfied or dissatisfied with your standard of living, all the things you can buy or do?

How the Standard of Living Is Measured (https://www.thebalance.com/standard-of-living-3305758)

The generally accepted measure of the standard of living is GDP per capita. This is a nation's gross
domestic product divided by its population. The GDP is the total output of goods and services
produced in a year by everyone within the country's borders.

Real GDP per capita removes the effects of inflation or price increases. Real GDP is a better measure
of the standard of living than nominal GDP. A country that produces a lot will be able to pay higher
wages. That means its residents can afford to buy more of its plentiful production.

GDP per capita has three flaws. First, it doesn't count unpaid work. That includes critical
components like in-home child or elder care, volunteer activities, and housework. Many activities
that are included in GDP couldn't occur if there weren't these support activities.

Second, it doesn't measure pollution, safety, and health. The government may encourage an
industry that spews chemicals as part of its manufacturing process. The elected officials only see the
jobs created. The cost may not come to roost until decades later.

Third, the GDP per capita measurement assumes that production, and its rewards, are divided
equally among everyone. It ignores income inequality. It can report a high standard of living for a
country where only a few enjoy it.

Other Measures (https://www.thebalance.com/standard-of-living-3305758)

The World Bank uses a very similar measure, GNP per capita. That's gross national product per
person. It measures the level of income paid to all the country's citizens, no matter where they are
in the world. GDP per capita only measures the income paid to those residing in the country’s
borders. GNP per capita can raise a country’s standard of living. That’s because many citizens live in
other countries to get better jobs. They also remit part of their wages back to their families at home.