๐Ÿ“˜ CodingMarble Learn

Poverty: Meaning, Measurement, Causes and Responses

Absolute poverty means lacking the basics needed to survive: food, water, shelter, clothing. The World Bank extreme-poverty line is about US$3 a person a day (2021 prices). Relative poverty means having much less than the usual standard in your society, often measured as below 60% of median income, so people cannot join normal life. Poverty is unequally spread: children, lone parents, disabled people, unemployed people, some ethnic minorities and rural families face higher risk, and wealth is even more unequal than income. Cultural explanations blame values passed on in families or a welfare-dependent "underclass"; structural explanations blame low wages, unemployment, insecure and de-skilled work, globalisation and welfare cuts. Responses include benefits, pensions, minimum wages and free services, with debate about dependency.

๐ŸŽฌ Step-by-step story

  1. Some households cannot pay for food, water and shelter. They are below the absolute poverty line: they cannot meet basic needs.
  2. Now find the middle income. Take 60% of it. Households below that line are in relative poverty: they cannot join normal life.
  3. Poverty is not shared equally. Children, lone parents, disabled and unemployed people have a higher risk.
  4. Why does poverty last? A cycle: low income, poor housing, weak schooling, low pay. Cultural views blame habits; structural views blame jobs and wages.
  5. Welfare lifts people up: benefits, pensions, a minimum wage, free meals and health care.
  6. Free play: make everyone richer. Absolute poverty can disappear, but relative poverty stays if the gap stays.

Tip: drag the 3D scene to turn it. Use two fingers to zoom.

๐Ÿค” Common doubts, cleared

If someone has a phone and TV, how can they be poor?

They may be above the absolute line but far below the normal standard in their society, so they are relatively poor and may still skip meals or heating.

Why use the median, not the average?

A few very rich people pull the mean up. The median is the middle household and is not moved by extremes.

Can relative poverty ever end?

Only if the gap between the bottom and the middle closes. Raising everyone equally does not remove it.

Is poverty the fault of the poor?

Cultural views say values matter; structural views point to jobs, wages and policy. Most evidence shows structure is a big cause.

Do benefits make people lazy?

That is the New Right claim. Others reply that benefits are often too low to live on and most claimants are children, pensioners, disabled people or low-paid workers.

Absolute poverty

Absolute poverty means not having enough to meet basic needs for survival and health: food, clean water, shelter, clothing, basic health care. It is measured with a fixed line, like the World Bank line of about US$3 a person a day (2021 prices) for extreme poverty. Seebohm Rowntree in York (1899) first measured it by pricing a minimum diet.

Strength: easy to compare across countries and over time. Weakness: what counts as "basic" differs between places and changes over time.

Relative poverty

Relative poverty means having much less than the usual standard of living in your society, so you cannot take part in normal life. Peter Townsend described it as lacking things most people see as normal. A common line is below 60% of median household income (the EU and UK) or 50% (OECD).

Because the line moves with average income, relative poverty can stay even when everyone gets richer, and some say it measures inequality rather than poverty. Deprivation indices list items (warm home, two meals a day, a winter coat) and count how many people lack them. Social exclusion is a wider idea: being shut out of jobs, services and social life.

Who is poor? Distribution of poverty and wealth

Explaining poverty: cultural and structural views

Individual and cultural explanations

Structural explanations

Critics of the underclass idea say most poor people want to work and share mainstream values; the problem is the lack of good jobs.

Causes and effects of poverty (economic view)

Causes: unemployment, low productivity and pay, low education and skills, illness and disability, large families or many dependants, discrimination, weak social protection, high living costs, conflict and disasters.

Effects: poor health and lower life expectancy, lower school results, less spending and slower growth, more stress and crime, lower social mobility, and a cycle that passes poverty to the next generation.

Welfare responses

Debates: New Right says welfare creates dependency and should be cut; social democrats say benefits are too low and poverty is caused by the system; Marxists say welfare only softens capitalism.

Try it

List 10 things a teenager in your town "needs" to join normal life. Ask an older relative which ones they had at your age. The list changes: that is why relative poverty moves over time. In the 3D, raise everyone's income and watch both poverty lines.

Key formulas and definitions

Worked examples

1. Median income in a country is 30,000 a year. Where is the relative poverty line at 60%?

0.6 ร— 30,000 = 18,000 a year. Households below 18,000 are in relative poverty.

2. Incomes of 5 households: 8, 12, 20, 25, 40 (thousand). Find the 60% median line and count who is poor.

Ordered, the middle value is 20. 60% of 20 = 12. Only the household with 8 is below 12 (12 is not below it), so 1 household is relatively poor.

3. Everyone's income doubles. What happens to absolute and relative poverty?

Absolute poverty falls, because more people can buy basic needs. Relative poverty stays the same, because the median and the 60% line double too.

4. Give a cultural and a structural explanation for long-term unemployment in an old mining town.

Cultural: young people learn low expectations and rely on benefits. Structural: the mines closed through globalisation, and the new jobs are few, low paid and need different skills.

5. Is free school meals for all children universal or means-tested?

Universal, because every child in the group gets it regardless of family income.

Common mistakes

Practice quiz

1. Absolute poverty means:
2. A common relative poverty line is:
3. Who linked poverty to a welfare-dependent "underclass"?
4. Which is a structural cause of poverty?
5. Wealth means:

Practice: answer these yourself

Type or choose your answer, then press Check. Use a hint if you are stuck; the full solution appears after you answer.

Frequently asked questions

What is the difference between absolute and relative poverty?

Absolute poverty is lacking basic needs for survival, measured by a fixed line. Relative poverty is having far less than the usual standard in your society, often below 60% of median income.

What is the underclass debate?

Charles Murray argued that a group dependent on benefits, with high crime and family breakdown, keeps itself poor. Critics say poverty is mainly caused by structural factors like lack of good jobs.

How do governments reduce poverty?

Through benefits and pensions, minimum wages, free health care and education, cheap food schemes and job guarantees, paid for by taxes.

Where this is taught

England (GCSE, A level)Year 113.6 Social stratification
England (GCSE, A level)Year 124.2.4 Topic option 1 (choose one): Work, poverty and welfare
England (GCSE, A level)Year 134.1.7 Distribution of income and wealth: poverty and inequality

Learn first

Learn next

Related lessons

All Sociology lessons