Poverty line

Examples of Poverty line in the following topics:

• Measurement Problems

  • Taking into account the problems with the Gini ratio, a concept like the poverty line does an effective job in offsetting this variability.
  • Looking at the , one can see that measuring the percentages of individuals under the poverty line from country to country demonstrates what appears to be a graphic for comparison.
  • However, due to the fact that poverty lines are different in different countries (because there is no standard way in which to enforce setting and measuring the poverty line) it is not relative.
  • This graph illustrates the different percentiles of individuals under the poverty line across the world.
  • One criticism of this method is that national poverty lines are not derived objectively in a standardized fashion, and thus there is limited value to this graphic in relative terms.

• Defining and Measuring Poverty

  • Absolute poverty is poverty to the extent of which an individual is deprived of the ability to fulfill basic human needs (i.e. water, shelter, food, education, etc.).
  • When conceptually approaching the idea of a poverty line, it is useful to frame it within the context of generating an amount of income that is appropriate to ensure a reasonable standard of living for an individual.
  • Someone below a nationally set poverty line lacks the purchasing power to fulfill their needs and capture opportunities.
  • The United States, for example, has most recently (2012) set the poverty line at $23,050 (annually) with a total of 16% of the population falling under this level (according to the U.S.
  • In observing poverty over time, the rates of poverty alongside the advances in economic production, demonstrates the value in technological and economic progress.

• Poverty and Inequality

  • Their faith is clouded, however, by the fact that poverty persists in many parts of the country.
  • Government anti-poverty efforts have made some progress but have not eradicated the problem.
  • In 1998, a family of four with an annual income below $16,530 was classified as living in poverty.
  • What is more, the overall figures mask much more severe pockets of poverty.
  • Families headed by single mothers are particularly susceptible to poverty.

• Arguments in Favor and Opposed to Economic Growth

  • Economic growth alleviates poverty by increasing employment opportunities and labor productivity.
  • Economic growth has many positive effects, but a society must not favor economic growth over solving pressing social issues such as poverty.
  • For example, in a country with low inequality, a country with a growth rate of 2% per head and 40% of the population living in poverty can halve the poverty in 10 years.
  • In contrast, if the same country has high inequality it will take nearly 60 years to achieve the same level of poverty reduction.

• Farm Policy of the 20th Century

  • Congress created the Rural Electrification Administration to extend electric power lines into the countryside.
  • During President Lyndon Johnson's War on Poverty, the government launched the federal Food Stamp program, giving low-income persons coupons that could be accepted as payment for food by grocery stores.

• Microeconomics

  • Urban Economics: challenges faced by cities, such as sprawl, traffic congestion, and poverty.

• Personal Income

  • The Census Bureau also produces alternative estimates of income and poverty based on broadened definitions of income that include many of these income components that are not included in money income.

• The Relationship Between Risk and Return and the Security Market Line

  • The security market line is useful to determine if an asset being considered for a portfolio offers a reasonable expected return for risk.
  • For individual securities, the security market line (SML) and its relation to expected return and systematic risk (beta) depicts an individual security in relation to their security risk class .
  • The security market line depicts the the return on a security relative to its own risk.

• The Global Economy

  • In some cases, the fund eased its demands for deficit reduction so that countries could increase spending on programs designed to alleviate poverty and protect the unemployed.

• Global Impacts

  • Another indirect global impact that occurred as a result of the economic collapse is political instability, primarily due to the inability of developed nations to pursue social welfare investments and global poverty reduction processes during recessionary times.