Comparing the Standards of Living for 5 Countries

COMPARING THE STANDARDS OF LIVING FOR 5 COUNTRIES 5

Comparingthe Standards of Living for 5 Countries

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Comparingthe Standards of Living for 5 Countries

Thestandard of living among the five countries is comparatively high butvaried when related to each other. The country with the highestliving standard is the United States. This is because the UnitedStates has a higher human development index compared to the otherfour countries. The human development index of the United States is0.914, higher than the other four, with the closest country beingCanada (World Bank, 2015). The human development index of the UnitedStates is supported by the lower levels of unemployment, which standsat 5.3 for the year 2014 (World Bank, 2015).

Thehuman development index gives a composite statistic to evaluate theliving standards in these five countries. According to Carbaugh(2014), the human development index gives a composite statistic thatincluded life expectancy, per capita income, and education as theindicators. These indicators are used to rank countries in terms oftheir human development by establishing the composite statistics andvalues (Figart &amp Marangos, 2013). Therefore, the higher statisticof 0.914 by the United States shows that it ranks higher in terms ofthe human development aspect of the per capita income in the country.As a result, the living standards in the country are higher comparedto the other four countries.

Inaddition to lower inflation rate, the United States had the secondlowest unemployment rate at 5.3%. At the same time, the lifeexpectancy is not the lowest, despite being marginally behind Canada,Australia and the United Kingdom (World Bank, 2015). The humandevelopment index can be used to compare the living standard ofcountries in addition to other indicators (Figart &amp Marangos,2013). These other criteria of evaluating the standards of livingaffirm that the United States has the highest level of livingstandards.

Theonly country that has a higher life expectancy statistic than Canadais Australia, but with a marginal value. However, the inflation ratein Australia is 6.5%. This is a rational conclusion, despite thecountry having the highest level of unemployment, at 6.5% (WorldBank, 2015). This conclusion is informed by the high level of lifeexpectancy in Canada compared to China, United States and the UnitedKingdom. While the United States has the highest score of livingstandards, Canada has a higher living standard compared to the otherthree countries, based on the human development index.

Onthe other hand, the other four countries have lower living standardsthan the United States, but China has the lowest living standards.This is because it has the lowest human development index compared tothe other four countries, Australia, United States, United Kingdomand Canada. A country with a low human development score indicateslower living standards (Anord, 2007). The human development index forChina is 0.719, a marginally lower value compared to the othercountries, such as Australia, which is the closest following at0.881. While China has a higher gross product, its economy cannotsupport the human development aspects compared to the other countriesthat have lower GDP but a higher human development index.

References

Carbaugh,R. (2014). InternationalEconomics.Boston:Cengage Learning

Figart,D.M., &amp Marangos, J. (2013). LivingStandards and Social Well-Being.New York: Routledge

Anord,R.A. (2007). Economics.Boston:Cengage Learning

WorldBank, 2015. Retrieved From, &lt http://data.worldbank.org&gt

Appendix

Year

Canada

USA

Australia

UK

China

Gross Domestic Product (per capita) in $million

1,786,655

17,419,000

1,453,770

2,941,886

10,360,105

Inflation

1.9 %

1.6 %

2.5 %

1.5 %

2.0&nbsp%

Unemployment Rates

6.5%

5.3%

6.0%

5.6%

4.1%

Average Life Expectancy

81.67

79.56

82.07

80.42

75.15

Literacy Levels

99%

99%

96%

99%

97.5

Human Development Index

0.902

0.914

0.881

0.892

0.719

GNI per capita in

51,690

55,200

64,680

42,690

7,380

Source:(WorldBank, 2015)