In his book "The Price of Inequality," Joseph E. Stiglitz emphasizes that the effectiveness of an economy should be measured by the long-term living standards of its citizens. He argues that focusing solely on economic growth or GDP figures overlooks the real impacts on people's daily lives, such as access to resources and opportunities. Sustainable improvements in living conditions reflect a more accurate picture of economic success.

Stiglitz warns that a divided society, characterized by widespread inequality, undermines overall economic health. When only a small segment of the population benefits from economic advancements, the majority suffers, leading to social and economic instability. Therefore, assessing living standards provides crucial insight into the true well-being of a society and its capacity for future progress.