Thursday, June 7, 2007

Relative and Absolute poverty

hello why do we use relative poverty as a measure rather than absolute?

Relative Poverty: This is when income is less than the average income, by a certain amount. For example, in the UK relative poverty is defined as income 50% of average incomes. Therefore a rise in economic growth will cause a change in what constitutes economic growth.

Absolute Poverty: is Income below a certain level necessary to maintain minimum standards of living.

In UK absolute poverty should not occur, at least in theory. everyone who gets government benefits should have enough to live on and maintain basic essentials of life. (some homeless people may slip through this net)

Relative poverty is much more useful for determining the levels of inequality. despite economic growth, poverty remains.

1 comment:

Jedda Smith said...

Relative poverty isn't just an economic, it's more about social norms and depends on if you can conform to them.

In western society absolute poverty isn't previlant, where as relative is especially amoungst the working classes.

Forgive the spelling