Poverty
Two types of poverty
- Poverty = when people cannot afford a basic standard of living.
- absolute poverty — can't afford even the basics (food, clean water, shelter, clothing).
- relative poverty — poor compared with others in the same country (can afford basics, but much less than most).
Practice
Absolute poverty is when people cannot afford:
Absolute poverty means lacking basic needs; relative poverty is being poor compared with others.
Practice
Relative poverty means people are:
In relative poverty people can afford the basics but have much less than most around them.
Causes & policies
- Causes: low income/wages, unemployment, poor education and health, old age, many children.
- Policies to reduce poverty:
- economic growth (creates jobs/income),
- redistribute income (progressive tax → help for the poor),
- a minimum wage, state benefits, better state education/healthcare.
Practice
Which help reduce poverty? (Choose all that apply.)
Growth, a minimum wage, benefits and better education/health reduce poverty.
You've got it
Key idea
- absolute poverty = can't afford basics; relative poverty = poor vs others in the country
- causes: low income, unemployment, poor education/health
- reduce it with growth, redistribution, minimum wage, benefits, education/health