The kind of life that people can afford is largely dependent on the income they earn. For example, people with higher incomes have easy access to things such as clothing and food and can even afford some luxuries.
The kind of life that people can afford is largely dependent on the income they earn. For example, people with higher incomes have easy access to things such as clothing and food and can even afford some luxuries. On the other hand, persons who have low incomes have difficulties meeting their necessities, not to mention luxuries. They are, therefore, subject to poor living standards.
ii. Technology
Technology improves people’s standards of living by making some tasks easier to perform. For example, by adopting new technologies, people who run private business can increase their production levels and incur lesser labor costs. This is beneficial to the owners as it is likely to raise the company’s profit margin.
iii. The home country’s inflation rate
The levels of inflation in a particular economy determine the cost of both goods and services. Therefore, in instances when inflation is high, people need more money to maintain their current living standards; otherwise they are driven to poor living standards. However, individuals’ living standards are likely to improve when there is a reduced inflation rate.
iv. Availability of healthcare
The availability of healthcare influences living standards since only healthy people promise high productivity levels. This implies that when healthcare is inaccessible, those affected are less productive, hence earn less. This makes it hard for them to afford some of the things that they would need, lowering their living standards.
v. Availability of education
Through education, people gain expertise that they can use to earn income. Lack and poverty are therefore prevalent in areas that have high illiteracy levels.
