Absolute vs Relative Poverty – Difference and Comparison

What is Absolute Poverty?

Absolute poverty refers to a condition where a person does not earn enough to meet their day-to-day basic requirements. When a person goes below this threshold their survival is in danger. Absolute poverty is not caused by one deciding circumstance, it’s a combination of circumstances that lead to this term.

It is caused by-

1. Absolute poverty refers to a condition where a person does not earn enough to meet their day-to-day basic requirements. When a person goes below this threshold their survival is in danger. Absolute poverty is not caused by one deciding circumstance, it’s a combination of circumstances that lead to this term. to lack of education where the person didn’t attend his school lack of food.
2. From politics.
3. To access of services like of access to school or health service.
4. Lack of available jobs.
5. Conflict- likes wars, etc.
6. By someone with physical disabilities.

Absolute poverty can be defined by the World Bank as having an income below 1.90 dollars per day.

It was accepted traditionally all over the world. And some causes of absolute poverty are low Price –consumption curve (PCC), low Per Capita Income (PCI), lack of income, etc.

The term absolute poverty covers basic needs of living. In day-to-day life, we hear about the rise of poverty. This mainly refers to relative poverty which is based on the average income levels of a country. Absolute poverty covers only basic requirements. It can be reduced if there is control over overpopulation due to which liabilities of jobs will be higher.

What is Relative Poverty?

Relative poverty means a person cannot afford to spend their money more than their basic requirement. Thus a person can be poor in a relative sense or cannot be in terms of it. It can be observed internationally or within society. We can say relative is an injustice to someone who is facing it. Relative poverty has chances of changing over time, as the wealth of the society increases, the amount of income and resources will increase as well.

Relative poverty is stated to be universal and used to measure or compare between other countries. The people who fall under these criteria are like to be said below the poverty line or above the poverty line.

Relative poverty can be changed over time or it can be permanent. It is different in places, nation to nation. Relative poverty depends upon the development of the nation. Relative poverty is present overall in countries or nations.

It was conceptualized by Prof. Peter Townsend.

 Many causes lead to relative poverty some of them are poor health, education, unemployment, etc.

Difference Between Absolute Poverty and Relative Poverty

1. Absolute poverty means lack of income and lack of standard requirement for living whereas relative poverty means a person cannot afford to spend their money more than their basic requirement.
2. Absolute poverty can be changed by the time when relative poverty cannot be eradicated.
3. Absolute poverty is not universal and also not to be necessarily present in every county but relative poverty is said to be universal and it is present in every nation or country.
4. A person that comes under absolute poverty lies under the poverty line but in the case of a relative, it lies above the poverty line.
5. Absolute poverty can be reduced if there is control in population, employment, etc.  But relative poverty can be reduced if the difference between the rich and poor is minimized.
6. Absolute poverty is said to be mass poverty but relative poverty is said to be inequalities between the people.

Comparison Between Absolute and Relative Poverty.

References

1. https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1475-4991.2000.tb00954.x
2. https://content.iospress.com/articles/journal-of-economic-and-social-measurement/jem00192