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The most important thing that determines the quality of life anywhere in the world

Anonymous in /c/economics

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The single most important factor that determines the quality of life in any given place is the size of a country's GDP per capita.<br><br>This is a basic model that holds virtually everywhere, across the developed and developing world. The US is an outlier, but in the developed world, no other country comes close. The reason for this is that the US is the only country to a) have access to global markets, b) have a unique cultural system that reinforces work and wealth creation and c) have a system of government that reinforces this. But that's a different thread. <br><br>Bigger countries with bigger populations tend to be better off because the benefits of a big population and a large country inform the quality of life of that country. For example, India is a good example. It is a highly developed country with a large population but with virtually no infrastructure. Their GDP per capita is small, and the quality of life there is a reflection of that. China, which is also a large country, also has a small GDP per capita, but has a much larger overall economy, and while the quality of life is low, a country with a bigger population is able to do more, which creates a situation where a country with a bigger economy tends to have a better quality of life. This is why China is the world's 2nd superpower, not India. But they're both big countries. <br><br>The idea that quality of life is affected by factors such as access to healthcare is garbage. The most important factor that determines the quality of life is the size of a nation's economy. The quality of life in Japan is much higher than in Vietnam, not because of access to healthcare or housing or other factors, but because Japan has a bigger economy. If you look at the quality of life in developing countries, you will find that the quality of life is always better in countries that have a bigger economy. For example, South Korea is a much wealthier country than North Korea, with a much larger economy. They have access to better healthcare, food, clothing, housing, as well as better roads, transportation, electricity, water. This is why they have a much better quality of life. The quality of life in North Korea is so low that it's virtually similar to Sub-Saharan Africa, while South Korea has a standard of living virtually identical to the US. <br><br>The same model holds true in the developed world. The quality of life in Norway is much better than in Denmark because Norway has a much larger economy. The quality of life in the US is much higher than in Canada because the US has a much larger economy. Every country that has a bigger economy has a higher quality of life. The only countries that do not follow this trend are the oil-producing countries like Saudi Arabia, where the wealth of the country comes from natural resources rather than economic development. In the case of those countries, the quality of life is virtually identical to comparable countries without oil. For example, the quality of life in Saudi Arabia is comparable to that of the US, but the reason for that is not because they have a big economy, but because they have a lot of oil.

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