What is the relationship between standard of living and cost of living?

Individuals who earn more tend to have a higher standard of living and therefore a higher cost of living.

The relationship between the standard of living and the cost of living is that the higher the standard of living, the more expensive it will be for individuals to maintain or even reach the standard. The standard of living is artificial and predetermined or set by authorities or government as a measure of living well. Setting a standard of living allows the government to assess its development goals and periodically assess the percentage of the population that achieves the goal. Society also contributes to the establishment of a standard of living through its lifestyle choices and its unquestioning acceptance of artificial standards to which it sustains.

In this sense, the more amenities, services, goods and other types of goods that people think they are entitled to, the more they will strive to achieve them, even when they do not have the income to finance them. This kind of mindset is in part intensified by the availability of credit in various forms to make it easier to achieve this lifestyle. The relationship between standard of living and cost of living can be seen when people choose to spend money they do not have to achieve or maintain a standard of living to which they believe they are entitled.

Another connection between the standard of living and the cost of living is that as the standard of living increases, the associated cost of supporting it also increases, even if the income to support the increased expectations does not increase adequately. Sometimes expectations of a required standard of living trap individuals in a vicious circle from which they may feel powerless to break free. For example, the more money an individual earns, the higher the standard of living expectations regarding their financial situation. This causes the cost of living for these individuals to increase even more, which means they have to earn more money to maintain the standard.

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Comparing the cost and living standards of the past further illustrates the relationship between the standard of living and the cost of living. In the past, before the advent of many tech gadgets and labor-saving devices, living standards were quite simple and the cost of living was also very affordable. At that time, the main desires were good housing, food, clothing and medical care. With the advent of technology, individuals must consider additions to the accepted standard of living, which often include telephones, the Internet, heating and cooling, vehicles and cooking, education, entertainment, and vacations. All these requirements add up and contribute to the rising cost of living.

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