Poverty line

The poverty line, which is also sometimes called the poverty threshold, is the smallest amount of money a person or a family needs to live on; to buy what is needed and is a line which is a gulf between the rich and the poor. It is the imaginary line drawn by the experts which has a particular amount if anybody earn income which is lower than this amount is known as poor and other who earn more than this amount is known as non-poor. People who are below this line are classified as poor. This line is used to decide who can get extra help with things like food, shelter or medical care. There is a poverty line based on the income and another based on consumption levels.

The poverty line is not the same in all countries. It can be decided by the economy. In the United States, the poverty line is different depending on how many people there are in a family. This is because it costs more to buy food and supplies for more people. So, for example, it is higher in a family with eight people than in a family with three people. The poverty line also makes sure the poor and rich are separated immensely. If there were not a poverty line, the distribution of goods to those of whom are actually poor, would decrease.  

Related pages
Poverty

References

Category:Poverty