Question

explain poverty line in points

Answer 1

  

      

  

Definition of poverty line

: a level of personal or family income below which one is classified as poor according to governmental standards— called also poverty level

The current "poverty line" for a single adult person under the age of 65 in the United States is $11,161; for a family of four (with two kids), $21,756 in total income per year is needed to stay above the poverty line. 

The "poverty line" from country to country can be dramatically different based on the cost of certain resources (housing, food, etc) and overall criteria for establishing a "poverty line". 

Unsurprisingly, as an economy contracts, more people find themselves beneath the "poverty line"

Poverty line differs from one country to another, depending upon the idea of poverty



Causes of Poverty:

The causes of poverty in Indian economy are

. High growth rate of population

2. Landless labour

3. Low productivity

4. Low food production

5. Illiteracy

6. Political system and corruption

7. Lack of job opportunity

8. Inequalities of income

9. Migration

10. Regional Disparities

11. Excessive population pressure on Agriculture.

12. Lack of capital

13. Lack of Vocational Education and Training

Concepts of Poverty:

There are two concepts of poverty in economics. They are absolute poverty and relative poverty.

(1) Absolute Poverty:

If a person’s income or consumption expenditure is so low that he cannot live at minimum subsistence level, he is said to be absolutely poor. It basically indicates deprivation of some sort resulting in hunger and starvation.

People are said to be in absolute poverty if their earnings are insufficient to obtain the minimum necessities for the maintenance of physical efficiency. Such minimum necessities are usually measured in terms of minimum nutritional requirements.

(2) Relative Poverty:

Relative poverty concept indicates inequalities of income. The people of low income groups are relatively poor as compared to the people whose incomes are high. Here poverty is viewed in terms of inequality between the poorest group and the rest of the community. It is to be noted that relative poverty cannot be eradicated without transfers from the rich to the poor. At the same time the relatively poor may be living above the minimum subsistence level.