Question

Do you think that poverty line is the best measure of poverty?​

Answer 1

Despite being one of the most crucial measures of economic well-being and deprivation, the official poverty measure—also known as the federal poverty line—is remarkably outdated. To determine if someone is in poverty or not, the government uses a threshold developed in the 1960s.

Official Poverty Measure. The Census Bureau determines poverty status by using an official poverty measure (OPM) that compares pre-tax cash income against a threshold that is set at three times the cost of a minimum food diet in 1963 and adjusted for family size.

The Importance of Measuring Poverty

In the U.S. and in many other developed countries, it is important to measure poverty because the poverty line is used to determine eligibility for federal, state, and local aid, including food stamps and health insurance.