The average standard of living is higher when growth in real per capita gdp. Real gdp is not a good measure for average living standards because it doesn"t take population into account. We use real per capita gdp to measure this, which is based on growth in productivity, and real gdp per worker. Economic growth: sustained, long-run increases in the level of real gdp. Rises in income change consumption patterns, more spent on leisure goods and savings, more government spending on public amenities. Higher income countries are more concerned with the environmental issues, which contributes to living standards as well. Some (unemployed) don"t benefit directly from higher wages, but benefit from an increased ease in redistribution policies with raised generosity. Current consumption is the primary cost of economic growth-we may consume more goods tomorrow by consuming fewer goods today. Economic growth renders some machinery and workers (out-dated skills) obsolete.