Standard of Living

Material Standard of Living

The material standard of living refers to the physical and tangible aspects of a person's quality of life. Essentially, these things can be directly measured and quantified, usually in terms of monetary value. This includes the income earned, the purchasing power of that income, and the quantity and quality of goods and services available.

Income and Purchasing Power of That Income

Income is one of the most common indicators of material standard of living. It refers to how much money a person or a household earns in a given period. This could be from employment wages, self-employment profits, or income from investments. Generally, higher income signifies a higher material standard of living, enabling individuals to acquire more goods and services that enhance their quality of life.

Example: In Singapore, for instance, the median monthly household income from work per household member rose from SGD 2,925 in 2019 to SGD 3,000 in 2020, representing a modest improvement in the material standard of living.

However, it's not just about how much income a person earns, but what that income can buy - the purchasing power. Consider this example:

John earns $2000 a month in Country A, while Mary earns $3000 in Country B. Initially, it seems like Mary has a higher standard of living. However, if the cost of goods in Country B is three times that in Country A, then despite earning more, Mary might have a lower material standard of living.

Quantity of Goods & Services Available

Income and purchasing power provides the means to acquire goods and services, but their true value comes to light only when considering the availability of these goods and services. Indeed, the quantity of available goods and services is a significant determinant of the material standard of living.

In a robust economy, a vast range of goods and services are available to consumers, allowing them to fulfil their diverse needs and wants. The more goods and services a market offers, the higher the potential standard of living, as it provides consumers with more choices and opportunities to enhance their lifestyles.

For instance, the availability of various food products, consumer electronics, transport services, entertainment options, and so on are key contributors to a better standard of living. Likewise, the availability of essential services such as healthcare and education also defines the material standard of living. It's worth noting that we're focusing purely on quantity, not quality, in this section.

To illustrate this, let's consider an example: In countries like the United States or Germany, the economies are diversified and highly developed, leading to a broad range of available goods and services. From numerous supermarket chains offering many food options to a well-established public transport system and an array of leisure and entertainment services, consumers have many choices. Consequently, these countries often rank high in terms of material standard of living.

Non-Material Standard of Living

While the material standard of living focuses on tangible aspects, the non-material standard delves into life's intangible and qualitative aspects. These aren't as easily measured as income or GDP, but they are vital in assessing the overall quality of life. These factors include working hours, access to quality healthcare and education, living conditions, and environmental pollution.

Working Hours

The average working hours can tell us a lot about a person's non-material standard of living. While longer working hours might translate into higher incomes, they could negatively impact other aspects of life, like leisure and family time, mental and physical health, and overall life satisfaction.

Example: In Japan, the phenomenon known as 'karoshi,' or death from overwork, highlights the negative implications of excessively long working hours on the non-material standard of living.

Access to Quality Healthcare and Education

Healthcare and education are two pivotal components of the non-material standard of living. Access to affordable, quality healthcare ensures that individuals receive medical attention.

Similarly, education plays a significant role in personal development and social mobility. A society with a high literacy rate and access to quality education often signals a high non-material standard of living.

Example: Scandinavian countries, known for their universal healthcare and high-quality education systems, provide an ideal example of how access to these services can uplift the non-material standard of living.

Living Conditions

Living conditions encapsulate a range of factors, such as housing quality, sanitation, and access to clean water. Inadequate living conditions can pose serious health risks and hinder social development, impacting the non-material standard of living.

Example: In some developing countries, poor sanitation and lack of clean water supply are pressing issues that lower the non-material standard of living.

Environmental Pollution

Environmental pollution affects the general population's health and quality of life. High levels of air, water, and soil pollution can lead to numerous health issues and diminish the enjoyment of natural resources, thereby reducing the non-material standard of living.

Example: In heavily industrialized cities like Beijing, smog and air pollution are persistent problems that significantly lower the quality of life.

Remember that while these factors help us understand and compare standards of living, they also have limitations. For example, averages and aggregates can hide disparities within a population, and some aspects are harder to measure than others. Therefore, it's important to consider a variety of indicators for a more holistic view. In the next sections, we'll delve deeper into these topics, providing further insights into living standards.

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