The standard of living is a very important and discussed topic, with some countries with lower standards of living than others. Regardless of whether a country has a lower standard of living than another, the overall standard of living as a whole has improved dramatically in the last one hundred years. But what is the process by which the market economy tends toward an improvement in the standard of living?
The free market encourages the increase of capital goods, which is possible because the free market enables one to invest and save their money. Because this increases capital goods this leaves a greater amount of capital goods for people to consume, for a cheaper price. This leaves people to be able to pursue other interests, to create different consumer goods. This has become much less tedious today because of the technological advances of our time that involve less people to create more things, which increases production, and reduces prices in comparison to wage rates.