What is the definition of poverty in the US? (2024)

FAQs

What is the definition of poverty in the US? ›

Poverty is a state or condition in which a person or community lacks the financial resources and other essentials for a minimum standard of living. Poverty-stricken people and families might go without proper housing, clean water, healthy food, and medical attention.

Poverty is measured in the United States by comparing a person's or family's income to a set poverty threshold or minimum amount of income needed to cover basic needs. People whose income falls under their threshold are considered poor. The U.S. Census Bureau is the government agency in charge of measuring poverty.

Poverty is a state or situation in which a person or a group of people don't have enough money or the basic things they need to live. Poverty means that a person doesn't make enough money from their job to meet their basic needs.

In the United States, poverty is measured using the poverty index. The poverty index (or threshold) is a fixed amount that the government has determined as 'adequate' as a set standard of living.

Poverty is about not having enough money to meet basic needs including food, clothing and shelter. However, poverty is more, much more than just not having enough money. The World Bank Organization describes poverty in this way: “Poverty is hunger.

Individuals, families and groups in the population can be said to be in poverty when they lack resources to obtain the type of diet, participate in the activities and have the living conditions and amenities which are customary, or at least widely encouraged and approved, in the societies in which they belong.

The official poverty thresholds do not vary geographically, but they are updated for inflation using Consumer Price Index (CPI-U). The official poverty definition uses money income before taxes and does not include capital gains or noncash benefits (such as public housing, Medicaid, and food stamps).

We can define poverty as the condition where the basic needs of a family, like food, shelter, clothing, and education are not fulfilled. It can lead to other problems like poor literacy, unemployment, malnutrition, etc. A poor person is not able to get education due to lack of money and therefore remains unemployed.

Causes of poverty

Many people who work full-time or multiple jobs still don't earn enough money to make ends meet. People with disabilities and chronic conditions may not be able to work or paid fairly.

A poor person is an individual who does not have the provisions or financial capabilities to fulfill the minimum essential necessities of life. Street cobblers, push-cart vendors, rag pickers, flower sellers, beggars, and vendors are some kinds of poor and weak groups in urban neighbourhoods.

What is the best way to define poverty? ›

Poverty refers to the lack of adequate financial resources such that individuals, households, and entire communities don't have the means to subsist or to acquire the basic necessities for a flourishing life. This absence of means can result in struggles to obtain food, clothing, shelter, and medicine.

Absolute poverty refers to when a person or household does not have the minimum amount of income needed to meet the minimum living requirements needed over an extended period of time. In other words, they cannot meet their basic needs.

As noted below, the thresholds were designated as the Federal Government's official statistical definition of poverty in August 1969.

poverty, the state of one who lacks a usual or socially acceptable amount of money or material possessions. Poverty is said to exist when people lack the means to satisfy their basic needs.

These poverty thresholds are used for statistical purposes to calculate the number of Americans living in poverty. They are also the starting points from which federal “poverty guidelines” are calculated. According to the most recent report issued in January 2023, the poverty threshold for a family of four is $29,960.

Some common synonyms of poverty are destitution, indigence, penury, and want.

These guidelines are adjusted each year for inflation. In 2023, the federal poverty level definition of low income for a single-person household is $14,580 annually. Each additional person in the household adds $5,140 to the total. For example, the poverty guideline is $30,000 per year for a family of four.

People living below 150% the poverty threshold where the poverty level is based on monetary income and does not include noncash benefits, such as food stamps. Poverty thresholds reflect family size and composition and are adjusted each year using the annual average Consumer Price Index level.