Standard of Living

Earned income, taxes, and government assistance all contribute to the standard of living in American households.

Data Updated February 7, 2023
Table of Contents

What are the basics on the American standard of living?

There are many ways to understand what the standard of living looks like in the US: wages and income, government assistance — like Medicaid and unemployment insurance — poverty, household expenses, and more. This page showcases some of these measures to help answer some fundamental questions and directs you to data to understand how our standard of living is changing.

What is the role of the government in standard of living?

Spending on standard of living

In fiscal year 2020, governments spent a combined total of $2.1 trillion on standard of living and aid for the disadvantaged.

That comes out to $6,376 per person.

USAFacts categorizes government budget data to allocate spending appropriately, and to arrive at the estimate presented here. Spending on standard of living, most notably with unemployment insurance, spiked during the pandemic.

Government revenue and expenditures are based on data from the Office of Management and Budget, the Census Bureau, and the Bureau of Economic Analysis. Each is published annually, although due to collection times, state and local government data are not as current as federal data. Thus, when combining federal, state, and local revenues and expenditures, the most recent year for a combined number may be delayed.

Agencies and elected officials

Focus
Key actors
Responsibilities

Income and taxes

Department of Labor, Congress

Set and enforce federal minimum wage

Cash assistance

Department of Health and Human Services

Give block grants to fund Temporary Aid for Needy Families (TANF)

Non-cash assistance and services (including medical benefits)

Department of Health and Human Services

Fund childcare assistance

Focus

Income and taxes

Cash assistance

Non-cash assistance and services (including medical benefits)

More on standard of living from USAFacts

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