What term describes lacking the financial resources to meet a minimum standard of living?
Standard of Living: Meaning, Cistron and Other Details
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Meaning:
Standard of living' refers to the necessaries, comforts and luxuries which a person is accepted to savour.
In other words, standard of living of the people means the quantity and quality of their consumption.
Nosotros know that if a person satisfies some wants in a particular manner long plenty, they recur and become habits.
He must accept those commodities and services; over and over again otherwise he would not feel happy. Such things become his daily requirements and constitute what has been called his standard of living. They include his food, dress, house, entertainments, etc. Standard of living is, in short, his manner of living.
The standard of living of a person is not determined only past himself or according to his own whims and desires. He has also to consider what social club expects of him. It is thus a compromise between what he himself likes and what the society expects.
Standard of Living and Standard of Life:
A stardom is sometimes fabricated between standard of living and standard of life. Standard of living , refers to our usual scale of expenditure, the goods we consume and the services nosotros relish, our attitudes and values. Standard of life is a much wider term. Information technology refers to one's ethics in life. It includes a person's expenditure on his non-cloth requirements. "Simple living and high thinking" is a mutual axiom. "Simple living" hints at a depression standard of living, simply "high thinking" refers to a high standard of life. Mahatma Gandhi had a low standard of living but a loftier standard of life.
Factors Determining Standard of Living in a Country:
A major objective of the authorities of a land is to provide practiced living to i s people. Only different countries of the globe provide different levels of living to their people. In fact, there are marked inequalities in the standards of living of the people in different countries of the world. On the one hand, there are advanced countries like the U.One thousand., the U.s.a.A., Canada and the countries of Western Europe where standards of living are very loftier. Therefore, these countries have been called affluent societies.
On the other hand, there are nether-adult countries like India, Pakistan, China, Burma, etc., where standard of living of the people is extremely low. The extent of differences in the levels of living between the U.S.A. and India tin can be known from the comparing of per capita income in both countries every bit it is the per capita income on which the standard of living of a people primarily depends. According to the latest 1984 World Development Study, the per capita income of the U.Due south.A. is 3.sixteen dollars, while in India the per capita income is only 260 U.Due south. dollars, i.e. one fiftieth of that of the U.Southward.A.
The post-obit are the main factors on which the standard of living in a country depends:
Level of National Income or Output:
The fundamental reason for the differences in the levels of living betwixt different countries is the difference in their levels of national income. The level of national income depends upon the total volume of production in the state. Those countries having higher national income or output enjoy higher standard of living, while the countries having lower national income or output accept lower standard of living. The primary reason why standard of living is much higher in the United statesA. than in India is that the level of national output in the U.s.A. is much higher than that in Bharat.
Now the question arises:
Why practise some countries produce more than others? This brings us to the question of levels of productivity.
Level of Productivity:
The full amount of goods and services which a land is able to produce, and hence the standard of living it tin can provide to its people, depends upon the levels of productivity in dissimilar branches of economic activeness such as agriculture, industry, transport, etc. The higher the productivity per person engaged in agriculture, industry, etc., the higher volition be the national output and the standard 01 living of the people. Departure in productivity is the major crusade of differences in standards of living between dissimilar countries.
For example, in 1951, average productivity per person engaged in agriculture in the U.s.a.A. was two,722 dollars, while information technology was only 147 dollars in India. (Productivity has been expressed and measured in U.Southward. dollars in gild to have a comparative view). This productivity per person engaged in agriculture was 2,336 dollars in Canada and 1,806 dollars in the U.1000.
Further, average productivity per person engaged in manufacturing was 5,488 dollars in the UsA., 2,815 dollars in Canada, 1,332 dollars in the U.Chiliad. and just 320 dollars in India. The relative position is not much unlike even today.
In avant-garde countries, a farmer or a worker works with greater amount of capital letter equipment like machinery in a productive process. Developed countries have highly mechanized their processes of production. On the other hand, in under-adult countries, farmers in agriculture and workers in factories piece of work with small capital equipment.
Moreover, in developed economies not but capital per head is greater but the techniques of production used are much superior to those employed in under-developed countries. In other words, developed countries make use of advanced engineering in the product of goods and services, while the under-adult countries are technologically backward. No wonder that productivity per person engaged in under-developed countries is much lower than that in advanced countries.
Terms of Trade:
Another cistron which accounts for the differences in the levels of living between different countries is the charge per unit of exchange between goods exported and goods imported. The rate of exchange betwixt exports and imports is called the terms of merchandise. The terms of trade show how much of the goods a land imports can exist obtained by a unit of the goods it exports. The terms of trade can exist measured by taking the ratio of price-level of its exports to the price-level of its imports.
Likewise, the average standard of living in a country depends not but on the physical productivities of its people but as well on the prices of appurtenances it exports and the prices of appurtenances information technology imports (i.eastward., terms of merchandise). If the terms of trade are more favorable for a country, information technology can import comparatively larger amount of goods for a given amount of exports and hence its standard of living volition exist higher.
Size of Population:
Still another important factor which determines the standard of living of the people of a country is the size of its population. Given the total national income or output of a country, the greater the size of its population, the lower volition exist its average standard of living. It is the per capita income which in fact determines the average standard of living in a country.
The per capita income of a country is determined by the full national income and the size of its population. Thus, the deviation in the size of population likewise accounts for the divergence in the standards of living between people of different countries.
The higher standard of living of the American people is due not only to the higher level of national income and productivity but too to the insufficiently smaller size of American population. The standard of living in India is low due both to the lower level of national income and to the larger size of its population.
Distribution of National Income:
Another determinant of the standard of living of the people of a country is the distribution of national income among the population. If there is large inequality in the distribution of income, then the standard of living of a few rich people volition be very high, while the standard of living of the masses of the people will be extremely low.
Even per capita income of a country does not indicate the truthful pic almost the standard of living in general, considering per capita income of a country is later on all an average income. Some people may savour income much higher than this and the bulk may be getting much lower than this.
General Price Level:
Another factor determining the standard of living of a people is the general price level in the century. Given the national income, the standard of living of the people will exist lower when the toll at high and higher when the prices are low. Dissimilar toll levels prevail in dissimilar counties. This as well accounts for the differences in standards of living of the people between different countries. Other things being equal, if the price level in country A is higher than in B, the standard of living will exist lower in A than in B.
Level of Education:
Another factor responsible for the differences in standards of living is the divergence in the level of education. Educated people tend to have higher standard of living than the uneducated. You cannot expect a college living standard from the illiterate and ignorant people. Fifty-fifty if the illiterate and uneducated people happen to take big incomes, they would either hoard them or squander them in useless social ceremonies or by indulging in evil habits such equally drinking, gambling, etc.
Factors Determining Private Standard of Living:
The post-obit are the chief factors on which the standard of living of an private or a family depends:
Income:
The most important cistron on which the standard of living of a person depends is his income. The amount of necessaries, comforts and luxuries which one enjoys are very largely governed by his income. A poor man's standard must exist very low and that of a millionaire very loftier. In this monetized world, it is the purchasing ability or earning power of a person which would decide his standard of living.
Size of the Family:
Coupled with a person's income is the size of the family which determines has standard of living, it a man has a big family, the family unit income volition be thinly spread over the family and the standard of living volition be lowered. Other things beingness equal, the scanner the size of the family, the higher is likely to be the standard of living. This underlines the importance of family unit planning.
Family Tradition:
A person inherits a certain standard of living from his parents. In most cases, such a standard of living volition exist maintained somehow. Difference from the traditional standard of the family unit is not easy.
Teaching, Tastes and Temperament:
A person's standard of living is also affected by his education, personal tastes and temperament. These factors would modify the standard that a person may have inherited from his family unit. He makes every attempt to maintain information technology or amend upon information technology.
Social Community and Conventions:
They are also bound to bear on a person'south standard of living, since he lives in a order and ordinarily follows the norms and practices obtaining in information technology. For reasons of his ain and his family izzat (accolade), he does non like to lag behind in observing such norms and conventions in social ceremonies similar marriages.
General Price Level:
For determining a person'southward or a family's standard of living, it is not enough to have into business relationship only his money income, but what the income is capable of ownership in terms of goods and services, i.east., person's real income is more of import for this purpose. That depends largely on the price level, specially that of the goods and services which enter into that person's consumption. These are some of the factors on which a person'south or a family'south standard of living depends.
Causes of Low Standard in India:
Country:
For example, standard of living of the people in England is much higher than that in India. Certain things are necessary in England which may be a luxury in India, e.thousand., overcoat or heating arrangements in living rooms. Climatic factors and the national income are the two main determinants of stand upard of living in a country. From the factors explained above the in the foregoing department, information technology is quite clear that the standard of living in India must exist low.
The following are the main causes:
Low National Income:
India has comparatively low national income. The national income of India compares very unfavorably fifty-fifty with some Asian and African countries. When the national income is depression, the standard of living cannot be high.
Huge Population:
Relative to its resource, the country is over-populated. Information technology has crossed the optimum size of population. This brings down the per capita income which is the most important single factor that determines the standard of living.
Nether-Development:
Economically Bharat is under-developed in agriculture. Trade, industry, transport, banking, etc. That is why the country'due south output is depression and the national income is low, resulting in a low standard of living.
Climatic Factor:
Indian climate is such that our requirements in the matter of nutrient, wearable and shelter are small. An boilerplate Indian tin can subsist on a scattering of parched grams, his habiliment may be scanty and for several months in the yr, he tin can live outdoors. The needs being few, the standard of living is low.
Religious Tradition:
Nearly people in Bharat nave the other-worldly attitude. Even when they can afford to live well, they volition deny their selves the pleasure. A Fakir in a loin cloth, like Mahatma Gandhi, living on frugal diet appeals more to the Indian listen. Uncomplicated living and high thinking seems to be the motto of the most.
Social and Family Obligations:
Social conventions compel usa to spend heavily on our children or even on donations to others children'due south marriages liven our funerals are very expensive. Unless one stints throughout life, one cannot hope to discharge properly these social obligations. No wonder that an average Indian is condemned to a life of poverty and thrift.
Remedies:
Efforts are being made in Republic of india at present to raise our standard of living.
The following are some of the measures adopted:
(i) Economic Evolution:
Our Five-Yr Plans are designed to bring about rapid economic development. This will raise the national income and, therefore, standard of living.
(ii) Family unit Planning:
Side by side, curbs are being put to the torrent of babies. Family planning programmes are being pursued on a nation-wide calibration. This volition reduce the size of the families and make available larger share of income per caput. The standard of living will therefore rise.
(iii) Spread of Education:
Educational facilities are beingness extended and so that people larn the value of richer and fuller life. This also helps in raising the family unit income.
(4) Improvement in the Means of Transport and Advice:
We are at present existence brought closer to people who have a higher standard of living and we unconsciously imitate them. This is a Powerful influence in raising our standard of living.
Source: https://www.economicsdiscussion.net/articles/standard-of-living-meaning-factor-and-other-details/1453
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