What's the difference between relative and absolute poverty?

To put it simply, poverty is not having the finances or access to a decent standard of living.

Worldwide stats have suggested that those born into poverty are much more likely to remain poor. While some people may escape it, "working hard" often isn't the solution, especially in areas where the economic system doesn't work in the peoples' favour.

Subsequently, it imposes a cycle of poverty.

Data is collected to measure poverty levels, which can be difficult. This allows results to be formed over the number of people living under the threshold.

Sign up to our free Indy100 weekly newsletter

Poverty goes beyond economics. In certain areas, society and politics also have to be considered, which have sparked a debate as to whether poverty is, in fact, a measurable concept.

What is the difference between absolute and relative poverty?

Absolute poverty

Absolute poverty generally means when a household is below a certain threshold.

In this case, the household income cannot meet the basic needs of life. These include education, healthcare, shelter, water, electricity and food. Even if the economy is growing, it does not affect those living below the poverty line.

Absolute poverty differs from country to country depending on its overall economic conditions.

Relative poverty

Relative poverty is when a household income receives around 50 per cent less than the average. It's often described as "relative deprivation."

While there is little money coming in, people are still unable to go beyond the bare essentials. They are still not enjoying the standard of living instead of the rest of the country. Generally speaking, it can be excluded from "normal" everyday luxuries such as the internet and clothing.

This type of poverty can, in some cases, be influenced by economic growth. However, it can also be a permanent structure.

Have your say in our news democracy. Click the upvote icon at the top of the page to help raise this article through the indy100 rankings.