Free Essay: Comparison Between the United States of America and Colombia

The standard of living and inflation rate are among the indicators of the health of an economy. The standard of living can be defined as the level of comfort, wealth, necessities, and material goods available to the citizens of a particular country. It is mostly measured using GDP per capita. Other measures of standards of living include income, economic opportunity, and life expectancy. Inflation refers to the rate at which the prices of goods and services rise against the falling purchasing power of a particular currency. This paper seeks to compare the standard of living and inflation rate between the US and Colombia.

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According to the 2019 World Bank statistics, the GDP per capita of the US and Colombia is $65,280.7 and $6,432.4, respectively (The World Bank, 2020). The average life expectancy in the US and Colombia is 79 and 77 years, respectively (The World Bank, 2020). The rate of adult unemployment in the US is 4.4%, while Colombia has an employment rate of 10.5% (The World Bank, 2020). From these indicators, it can be concluded that the US economy is more robust than that of Colombia.

The impact of COVID-19 on global economies has affected the prices of goods and services, as well as the purchasing power of different currencies around the world. Colombia had an inflation rate of 2.19% in June, down from 2.85% in May (Trading Economics, 2020). In the US, the annual inflation rate fell from 0.12% in May to 0.65% in June (McMahon, 2020). This data shows that both countries have developed sound monetary policies to combat inflation in the face of the pandemic. The lower inflation rate in the US also points to the better well-being of the population.

The comparison between the various standards of living as well as the inflation rate between the US and Colombia, shows that the well-being of Americans is higher than that of Colombians. This statement is proven by the higher life expectancy and lower unemployment rates. The lower inflation in the US also fosters investment and reduces uncertainty.

References

McMahon, T. (2020, Juky 14). What is the Current Inflation Rate? Retrieved from Inflation Data: https://inflationdata.com/Inflation/Inflation_Rate/CurrentInflation.asp?reloaded=true

The World Bank. (2020). GDP per capita (current US$) - Colombia. Retrieved from The World Bank: https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=COT

he World Bank. (2020). Life expectancy at birth, total (years). Retrieved from The World Bank: https://data.worldbank.org/indicator/SP.DYN.LE00.IN

The World Bank. (2020). Unemployment, total (% of total labor force) (modeled ILO estimate). Retrieved from The World Bank: https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS

Trading Economics. (2020). Colombia Inflation Rate. Retrieved from Trading Economics: https://tradingeconomics.com/colombia/inflation-cpi