Economics
Social Sciences

What does under the poverty line mean?

User Avatar
Wiki User
2012-05-24 00:13:50

The "poverty line" is a point where an individual's income just

meets the minimum necessary for basic survival in a society.

Firstly, there are two type of poverty: absolute poverty

(also known as destitution) is where an individual is unable to

meet basic human survival needs - they are unable to get enough

food, water, clothing, and shelter to continue to live, and will

die relatively shortly after reaching the absolute poverty level;

relative poverty (also known as being poor) where the

individual's standard of living is considerably below the mean

(generally, at least 50% below mean income level). Those in

relative poverty are not in any immediate danger of death, but

suffer from significant issues with malnutrition, health,

substandard clothing and housing, and an almost complete lack of

any luxury goods, as compared to a "typical" member of that

society.

In most contexts, the poverty line is the income level where an

individual (or family) enters relative poverty. For instance, 2010

mean US household income is about $50,000. The poverty limit for a

family of four was a household income of $22,000, or about 44% of

the mean household income.

Thus, living under the poverty line means that the

individual/family is definitely poor, and cannot afford much more

than the very basics of life.

In the United States, the phrase "under the poverty line" has a

specific meaning in the context of government documents. It refers

to the "absolute poverty line": the income threshold below which

families or individuals are considered to be lacking the

resources to meet the basic needs for healthy living; having

insufficient income to provide the food, shelter and clothing

needed to preserve health.


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.