Economics Income Inequality Questions Medium
Absolute poverty refers to a condition where individuals or households lack the basic necessities required for survival, such as food, shelter, and clothing. It is typically measured by establishing a poverty line, which represents the minimum income needed to afford these basic necessities. Absolute poverty is an objective measure that focuses on the absolute deprivation of individuals or households.
On the other hand, relative poverty is a concept that compares an individual or household's income or living standards to the average income or living standards of the society in which they live. It is a relative measure that takes into account the distribution of income within a society. Relative poverty is concerned with the social and economic disparities between different groups within a society.
The key difference between absolute poverty and relative poverty lies in their measurement and focus. Absolute poverty focuses on the basic necessities required for survival, while relative poverty considers the income or living standards in relation to the overall distribution of income within a society. While absolute poverty provides a threshold for measuring deprivation, relative poverty highlights the disparities and inequalities within a society.