the problem of poverty Flashcards
what is relative poverty?
Relative poverty is a situation where household income is a certain percentage less than the median household income in the economy
Main source of poverty in developed countries
what is absolute poverty?
Absolute poverty is a situation where individuals cannot afford to acquire the basic necessities for a healthy and safe existence
These necessities include shelter, water, nutrition, clothing and healthcare
More present in developing countries than is developed ones
Context- In 2022, the World Bank defined absolute poverty as anyone who was living on less than $1.90 a day (the so called international poverty line
causes and effects of poverty
low wages - the result of unemployment, informal employment, a lack of skills, or a primary sector based economy
education and healthcare - cost money and with lower wage levels, these are not accessible, resulting in poor human capital
People find it harder to stay well or recover from illness, resulting in lower productivity and shorter life expectancy
Low productivity - results in low wages and the cycle continues
population - with a large number of dependents (old people and children) for each working household tend to experience higher levels of poverty
