The economy plays a critical role in our quality of life. While the overall quality of life is dependent on economic factors, it is important to consider other factors that can affect quality of life. For example, crime and violence are non-economic risks that can significantly impact our lives. They also create subjective feelings of insecurity and can negatively affect our quality of life.
The economic impact of these factors on our quality of life can be measured through the additional costs we incur due to housing. Some of these costs may be positive, while others may be negative. Regardless of the factors affecting quality of life, these costs are greater than local wages. We should consider these extra costs when developing economic development policies.
While politicians tout economic growth and job creation as important indicators of progress, these metrics do not always translate into higher quality of life. In fact, higher growth rates benefit a relatively small segment of society while hurting the average citizen's quality of life. This skew in the economic picture has profound implications for the quality of life of Americans.
Economists have long assumed that economic growth improves the quality of people's lives. But recent studies have found that this is not the case. In fact, in many high-income countries, the quality of life hasn't improved since economic growth started. Many high-income countries have long exceeded the GDP threshold.
Despite being flawed indicators of quality of life, these measures do provide a good way to compare nations. The United States, for instance, has a high standard of living compared to other countries, but ranks low in certain areas. Poorer urban areas, for example, struggle with short life spans and higher rates of disease and illness. Moreover, quality of life is subjective and differs between different people. Certain segments of the population have a lower quality of life due to various factors, including discrimination, lack of education, or lack of access to basic necessities.