What is a difference between relative and absolute poverty?
Absolute Poverty is when people do not have enough money to meet
the basic threshold that is needed for survival. People fall below
this line and do not have enough money to buy food, shelter,
clothing etc. that is needed for survival.
Relative Poverty is when people are poor when compared to others
around them, but may still have enough money to survive. It is
based on the cultural environment around them, not on a basic
amount necessary for all humans to survive.
According to relative poverty, if you live in an expensive
neighborhood, and you have everything you need to get by, but do
not own luxurious things, you could still be said to be in poverty
when compared to the people around you, even though you have
everything you need. Relative poverty changes more often and
adjusts to the changes in society (food and housing becoming more
expensive in certain areas, more jobs etc.) whereas absolute
poverty stays the same, and this could be problematic for absolute
poverty, when comparing neighborhoods that differ, and when you
compare cross-nationally.