The term standard of living refers to a measure of consumer welfare. Economists measure a country’s standard of living by the level of real per capita INCOME. If a country’s real output (output after adjustment for INFLATION) increases at a rate faster than the population growth rate, its standard of living increases. Individuals whose incomes do not increase with the level of inflation find their standard of living decreases. Two problems with standard-of-living measures are the distribution of income and the assumption that an increasing standard of living is synonymous with an improved quality of life. During the American Industrial Revolution (late 1800s to early 1900s), REAL INCOME rose dramatically, but the distribution of income became more unequal. Similarly, in the 1980s per capita income rose but the LORENZ CURVE became more skewed as the upper 20 percent of Americans received a larger percentage of income (approximately 45 percent), while the lowest 20 percent of Americans received less (approximately 4.5 percent). Followers of BUDDHIST ECONOMICS and other social advocates question whether increased material output and CONSUMPTION lead to a better standard of living. For example, the purchase of security devices for one’s home is an increase in consumption, but the necessity of having security devices is surely not an improvement in one’s standard of living. Maintaining or attaining a certain minimum standard of living is often one of society’s goals. MINIMUM WAGE laws and UNEMPLOYMENT benefits are the basic social “safety nets” used to give Americans a minimum standard of living. Many social critics have called for a “living wage,” one that allows workers to maintain an acceptable rather than minimal standard of living. In 2001 Santa Monica, California, adopted a living-wage law requiring area employers to pay a minimum of $12.25 per hour, almost twice the state’s minimum wage of $6.25 per hour. Santa Monica is an affluent, expensive city in the Los Angeles area. To be able to live there, workers would have to earn considerably more than the state minimum wage. Many other cities and counties have adopted living-wage laws, but most only apply to a small percentage of local workers. Standard-of-living measures vary from country to country. Per capita real income has to be compared with the prices of goods and SERVICES in order to measure the PURCHASING power of a given level of income.