Home Knightsbridge Insights Difference Between Standard of Living and Quality of Life

Difference Between Standard of Living and Quality of Life

by Paul Ebeling

#live #living #welfare #wealth #comfort #happiness

“Standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area. Quality of life is a subjective term that can measure happiness”–Paul Ebeling

The standard of living implies the level of welfare provided to the residents of a country, i.e. it may refer to all those goods and services that people are able to consume and the resources they can access.

On the contrary, quality of life indicates the welfare and well being of a person or group.

The basic difference between the standard of living and quality of life lies in the individual preferences, i.e. the standard of living of people does not change as per the individual preferences, whereas the quality of life depends greatly on the individual preferences. These are 2 ways of understanding well being.

The Standard of Living of people of a country is reflected in the way in which people live, such as how much money they have to spend on, how their houses are constructed, how educated they are, what facilities are available to them, etc.

Standard of Living is a measure of comparison which is used to different countries, or regions, on the basis of metrics such as level of comfort, wealth, material possessions and basic necessities, which the residents have access to, in those geographic areas.

Real income per person and poverty rate are the 2 indicators that determine the standard of living. It analyses the quantity of material goods and services produced and sold in a particular region like a state or country.

So, to measure the standard of living components which can easily be quantified are taken into consideration like income, employment opportunities, poverty, cost of goods and services, life expectancy, infant mortality, rate of inflation, etc.

Here it must be noted that:

  • High standard of living results in more demand for comfort and luxury products, whereas a low standard of living less demand for comfort and luxury products.
  • It is based on both the quality and quantity of the available goods and services and how they are distributed among the population.

Quality of life can be defined as an individual’s outlook about his/her position in life with respect to the culture and value system, to which they belong and covers both positive and negative aspects of life.

  • It is based on an individual’s life situations.
  • It incorporates the physical and psychological health of a person along with their degree of independence, social associations and the way they relate to the surrounding.
  • It can be measured by both objective and subjective indicators, however in general it is measured using descriptive measures for example satisfaction and happiness

Quality of Life is determined by the overall welfare within a particular society that focuses on providing an opportunity to accomplish the objectives. It covers a number of subjective, i.e. non-financial factors that can influence human lives such as satisfaction and happiness.

Bottom line

Standard of Living is regarded as important because it contributes to the quality of life of a person. Quality of life is all about how a person feels about their life, whereas the standard of living is all about comfort, material possessions, wealth and so on.

Have a happy weekend, Keep the Faith!

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

Latest Articles

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.
CLOSE