Describe two different ways poverty is defined and explain how they are similar and different. What is the main criticism of each definition of poverty?

Question

What will be an ideal response?

Answer 1

An absolute measure of poverty sets a threshold or line, usually based on annual income. A person or family with an annual income at that line or below it is identified as being in poverty. Criticisms of this measure include that the poverty line is arbitrary; one dollar above the poverty line means you are not in poverty. Also, it is based on the amount a family will spend on a subsistence-level amount of food, rather than a level associated with a more nutritionally sound diet, and assumes that a family spends a third of its annual income on food, which is likely to be inaccurate. Yet many low-income families spend about half their income on rent.
A relative measure of poverty looks at a person, or a group such as a family, in relationship to the rest of the community or society. Is the person or group far below or well above others in terms of income, quality of housing, educational levels or opportunities, household possessions? A criticism is that the relative measure is more arbitrary and can change based on the comparison group. This can make it difficult to make societal-wide statements about poverty.