What is Living Standard definition/concept

The term standard of living refers to a person’s ability to have access to goods and services. However, making the issue more complex, the standard of living also reflects the quality of employment that one has, its possibilities for growth, access to education, etc. Other elements to be considered are the proximity or distance of falling into poverty, the number of hours needed to work to gather the resources that make it possible to maintain itself, and the possibility of accessing a quality health system . All these possibilities determine the quality of life of a person related to the environment that lives, being greater in places where the economy has reached a high degree of development.

Generally, wealth is considered synonymous with standard of living. This is true to some extent and must be considered in isolation. Wealth is the set of assets that a person has monetarily measured; however, this differs from the income level.. Let’s suppose as an example a person who acquired several assets due to his work and suddenly became unemployed. In this case, your wealth may start to decrease as that income you used to receive often doesn’t come anymore and, with that, your standard of living starts to decline despite the wealth you have. Now let’s see the case of a man of high income and good quality of property who, due to debts incurred, must allocate a large percentage of his income to pay them off. In this case, the difference in your income compared to your permanent accounts also affects your standard of living, limiting access to new goods and services. That’s why one must consider all aspects and circumstances to determine a person’s standard of living.

The standard of living is rising over the years. Today, a 21st century person tends to have more opportunities for a large amount of goods that in the past was not possible due to the high cost. That is why the development of the economy tends to raise the standard of living considerably and so it is important to concentrate all efforts in this direction.

Finally, it is important to emphasize that the standard of living of a population is undoubtedly one of the most important parameters when assessing the conditions of a country, as it reflects in some way the progress presented in the economy.

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