Does economic growth increase a community’s standard of living? Standard of living is often referred to as the level of wealth, comfort, material goods and necessities available to a certain class or area. There are several perspectives as to whether economic growth: does it increase a person’s quality of life; decrease it; or remain neutral on a person’s quality of life.
Overall, most thought leaders and economist agree economic growth does increase quality of life. Cities with economic growth are usually also growing in population and growing in the number of businesses which brings a higher tax base. With a higher base, revenue from taxes can be used to increase public services and used in areas such as health, education and transportation. All these services improve the level of comfort for residents.
Economic growth leads to more residents and more cultural diversity. With cultural diversity, there is increased creative thinking, more innovative ideas and this leads to improved products and services which ultimately lead to a higher standard of living. As discussed in “Cultural Diversity Leads to Economic Growth” this perspective also leads to creative thinking and innovation.
Fostering growth of a city in a sustainable and attractive method such as Complete Neighborhoods, welcoming diversity and offering a mix of affordable housing will spur economic activity and ultimately offer a higher standard of living to residents and new comers.