Absolute poverty

Definition

Absolute poverty refers to a condition where an individual or a household lacks the financial resources to meet basic life necessities such as food, shelter, and clothing. This level of poverty is defined by a specific threshold, often based on a daily income of less than $1.90, which is established by international standards. Understanding absolute poverty is crucial for analyzing how it is defined and measured, tracking historical trends, and assessing the effectiveness of various anti-poverty policies and programs aimed at alleviating this severe condition.

5 Must Know Facts For Your Next Test

1. Absolute poverty affects over 700 million people globally, primarily in developing countries, illustrating a stark contrast between wealth distribution.
2. It is distinct from relative poverty because it focuses on the inability to meet basic needs rather than comparisons within a society.
3. In the U.S., the official poverty measure identifies households living under the federal poverty line as experiencing absolute poverty, but this measurement may not fully capture the true extent of hardship.
4. Key factors contributing to absolute poverty include unemployment, lack of access to education and healthcare, and systemic inequality.
5. International organizations like the World Bank set benchmarks for absolute poverty, which guide global efforts to reduce poverty levels through targeted interventions.

Review Questions

• How does absolute poverty differ from relative poverty, and why is this distinction important in measuring economic hardship?
  • Absolute poverty differs from relative poverty in that it focuses on the inability to meet basic needs necessary for survival, whereas relative poverty considers an individual's financial status in comparison to others within society. This distinction is crucial because it helps policymakers and researchers understand the different dimensions of poverty. Addressing absolute poverty often requires immediate interventions for basic necessities, while relative poverty may need strategies that improve social equality and access to resources.
• Discuss the historical trends in absolute poverty in the U.S. and how they have shifted over recent decades.
  • Historically, absolute poverty in the U.S. has seen fluctuations due to economic conditions, policy changes, and social movements. After World War II, there was a significant decline in absolute poverty levels due to strong economic growth and the establishment of social safety nets. However, recent decades have witnessed increases in inequality and stagnation of wages for low-income workers, leading to a resurgence of absolute poverty in certain demographics. This shifting trend highlights the need for continuous assessment of economic policies aimed at alleviating this severe condition.
• Evaluate the effectiveness of current anti-poverty programs aimed at reducing absolute poverty in both domestic and international contexts.
  • Current anti-poverty programs vary widely in their effectiveness based on context and implementation. In domestic settings like the U.S., programs such as Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) aim to alleviate absolute poverty by providing essential support. Internationally, initiatives by organizations like the World Bank focus on economic development and education access. Evaluating their effectiveness requires analyzing outcomes such as reductions in extreme hunger or improved living conditions, as well as understanding how these programs can be tailored to address specific regional needs.

Related terms

relative poverty: Relative poverty is defined in relation to the economic status of other members of society, indicating that an individual or household cannot achieve a standard of living that is considered acceptable in their specific community.

poverty line: The poverty line is a threshold used to determine the minimum income level necessary to secure basic necessities for life; those earning below this line are considered to be living in poverty.

social safety net: Social safety nets are government programs designed to provide financial support and assistance to individuals and families facing economic hardships, helping them avoid falling into absolute poverty.