Depends how you define standard of living. If we consider "standard of living" to mean "happiness", as you seem to imply, that actually correlates well with rea

Depends how you define standard of living. If we consider "standard of living" to mean "happiness", as you seem to imply, that actually correlates well with real (inflation/CPI-adjusted) income. Accordingly, happiness levels have been flat and/or declining for the vast majority of the population [1], just as real wages have. [1]: http://ideas.repec.org/p/nbr/nberwo/7487.html http://ideas.repec.org/p/nbr/nberwo/7487.html