Poverty and Economic Hardship

Definition

Poverty is a state where an individual or community lacks financial resources and access to basic necessities. Economic hardship refers to difficult economic conditions experienced by individuals or communities due to poverty.

Analogy

Imagine trying to complete a puzzle without all the pieces. That's what poverty feels like - you're constantly struggling because you don't have everything you need.

Related terms

Absolute Poverty: This is when households earn below the necessary level to meet basic needs such as food, clothing, and shelter.

Relative Poverty: This is when households receive 50% less than average household incomes so they end up lacking in comparison with other residents who live around them even though they might manage basic needs.

Income Inequality: The unequal distribution of household or individual income across various participants in an economy.