Uk standard of living
a) explain how the standard of living in the UK could be measured (10)The standard of living in the UK can be measured in a number of different ways, considering many different variables, and producing a variety of different results.Real income per capita is one of the most commonly used methods of measuring living standards. It is found by dividing the real GDP by the total population of the country and provides an average income for the country. In order for it to provide an affective method of measuring living standards and demonstrating any trends in the UK, i.e. an increase in standards, the real income per capita would need to be calculated over a number of years and the real incomes of other countries should also be calculated in order to have a basis with which to compare the UK. However, real income per capita is not considered the best method of measuring living standards as it simply takes into account monetary earnings,
Overall, one can see that none of the above mentioned methods provide a total picture for UK living standards. Currently the UK unemployment rate is 2. The MEW takes the real GDP figures and then adjusts them by adding a value for leisure and positive externalities and deducting a value for negative aspects such as defence spending and the cost of police services. and living standards are much more than just income. Although taking other factors into account makes the MEW a good indicator again it only considers an average, not a person by person view. If there is high unemployment then the government will have to be paying out lots of money in the form of benefits, however with low employment not only does the government save by not having to pay benefits but also they get more money in the form of taxes from those extra people employed. It is measured using a combination of life expectancy, educational achievement and real GDP per capita. So when there is low unemployment people are not only better off due to the fact that they are receiving a wage but also because the government has more money and so can provide better facilities such as improved healthcare so that people are better off in a non-monetary sense. So unemployment levels can be seen as a good indicator as they demonstrate both monetary and non-monetary factors. The "Human Development Index" is also used to measure standard of living in the form of human development. In a raking of the top countries the UK comes 13th. The unemployment rate can also demonstrate living standards. However one must note that when the Government considers UK living standards they consider 120 separate categories which fall under 13 headings. The MEW (Measurable Economic Welfare) takes the problem of other factors apart from simply wages into account and so can be seen as a very efficient way of measuring living standards.
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