Poverty Measurement Dilemma: Absolute vs. Relative Thresholds Reshape Living Standards Worldwide
The article discusses different types of poverty: absolute poverty, which is about not having enough for basic needs, and relative poverty, which is about being less well-off compared to others in the country. Absolute poverty stays the same over time, while relative poverty changes with the overall standard of living. Measures of poverty based on money show that more people are relatively poor when looking at income rather than spending. This is because income is more concentrated and can be saved or used for things not counted as spending.