What is the concept of poverty line? How does it vary with time and place?

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#1

What is the concept of poverty line? How does it vary with time and place?
Answer:

  • A poverty line is an indicator of poverty, z’.e., it is a level of income which barely meets sustenance. A common method used to measure poverty is based on the income or consumption level.
  • A person is considered poor, if his or her income or consumption level falls below a given ‘minimum level’ necessary to fulfil basic needs.
  • What is necessary to satisfy basic needs is different at different times and in different countries.
  • Therefore, poverty line may vary with time and place. Each country uses an imaginary line that is considered appropriate for its existing level of development and its accepted minimum social norms.
  • For example, a person not having a car in the US may be considered poor. In India, owing of a car is still considered a luxury.