STANDARD OF LIVING

Standard of living refers to the level of material well-being enjoyed by an individual or group. The standard of living is generally measured by the collective cost of goods and services that is considered to represent the essential consumption of any society's members. By some measures, the standard of living will also include certain publicly provided services, such as education, health services, transportation, and intangible quality of life factors like clean water and air, and cultural and leisure activities.

The term standard of living may also refer to the goals that individuals or groups obtain for themselves as consumers in terms of services, housing, furnishings, or automobiles. In the United States during the 1960s, the United States government's definition of poverty was developed as a variant of the general concept of the standard of living in the country. In 1996, for example, the average poverty line for a four-person family was a little over $16,000. The indexes used to measure poverty and create specific dollar amounts to define poverty are based on arguably variable statistics, but the fact that a poverty index has been established bears witness that U.S. society appears to recognize what seems to be a baseline financial standard of living and is able to approximate those who are living below the current indexed standard during any given year.