What Is Poverty?

What Is Poverty?

Let me explain what poverty really means. It's a socioeconomic condition where people, families, or entire communities can't reach a minimum standard of living because they lack the necessary financial resources and essentials. This means they struggle to meet basic needs like housing, clean water, food, and medical care.

Different countries set their own standards to define the poverty line and count how many people are affected. While poverty is often tied to income levels, it actually comes from various factors including race, sexual identity, and access to education.

Key Takeaways

You should know that poverty goes beyond just not having enough money; it's a multifaceted socioeconomic issue shaped by elements like race, ethnicity, gender, and educational opportunities. As of 2022, about 37.9 million people in the US were in poverty, with thresholds depending on household size and age.

On a global scale, poverty is a major problem, with more than 700 million people surviving on less than $2.15 a day in extreme poverty. Children raised in these conditions deal with serious issues like health problems, higher death rates, and limited access to schooling and proper nutrition.

To fight poverty effectively, we need a comprehensive strategy that includes social welfare, better education, economic stability, and addressing systemic discrimination.

The Impact and Challenges of Poverty

Poverty means not having enough financial resources, so individuals, households, and communities can't afford to live or get the basics for a decent life. This leads to difficulties in securing food, clothing, shelter, and medicine.

It's both a personal issue and a larger social one. On a personal level, struggling to make ends meet causes social, physical, and mental problems. High poverty levels can hinder economic growth and connect to issues like crime, unemployment, urban decline, poor education, and health problems.

Governments use social welfare programs to help people and communities escape poverty. Some countries have stronger safety nets than others. For example, the US is more individualistic with limited welfare, while European nations offer broader support for those in need.

According to the latest census, 37.9 million people in the US lived in poverty in 2022, which is 11.5% of the population.

The Diverse Dimensions of Poverty

In the US, poverty status applies to those with income below a threshold set by the Department of Health and Human Services. The US Census Bureau calculates poverty rates as the percentage of the population in poverty.

When measuring, the Census excludes institutionalized people, those in military quarters, college dorm residents, and individuals under 15.

Each year, the Census updates poverty thresholds. For 2022, a family of four with two children under 18 had a threshold of $29,678 per year. For two people over 65 with no children under 18, it was $17,689.

These thresholds and the number of children under 18 help decide government aid allocation. The measurement uses pretax income.

Globally, poverty has decreased in developed countries since the Industrial Revolution due to increased production and agricultural advancements that made goods more affordable and boosted food yields.

The international poverty line is $2.15 per day, calculated from each country's threshold for sustaining one adult, converted to US dollars. As of September 2023, 700.6 million people lived in extreme poverty, per the World Bank.

Over 40% of the world's population is in poverty, and the US ranks low among developed nations. Communities of color are more vulnerable due to racist notions and structural racism and classism. COVID-19 pushed about 100 million more into extreme poverty.

How Poverty Affects Children

Poverty hits children hard. Those growing up in it often face frequent and severe health issues. Infants born into poverty are more likely to have low birth weight, leading to physical and mental disabilities.

In some developing countries, these infants are nine times more likely to die in their first month than in high-income ones. Survivors may have hearing and vision problems.

Children in poverty miss more school due to illness and experience more home stress. Homelessness is especially tough, as it limits healthcare and nutrition, causing frequent health problems.

Root Causes of Poverty

Poverty is a tough cycle to break and often passes down generations. It's influenced by socioeconomic status, ethnicity, gender, and location.

Many are born into it with little chance to escape, while others fall in due to economic downturns, disasters, rising costs, drug addiction, depression, or mental health issues.

Other causes include limited job growth, poor infrastructure, conflict, high living costs, social barriers, and lack of government support. Progress out of poverty can be temporary, threatened by economic shocks, food insecurity, and climate change.

Consequences include substance abuse, no education access, poor housing, and higher disease rates. Critical services like good schools, healthcare, electricity, and clean water remain out of reach. This can increase societal tensions, inequality, and crime.

The Role of Discrimination in Poverty

Poverty isn't just about income; discrimination plays a big role. Governments sometimes pass laws that block certain groups from healthcare, education, or social services, or deny them jobs and housing.

Societal beliefs can isolate people too. Common groups affected include those with HIV/AIDS, Black, Indigenous, and People of Color, women like single mothers, and LGBTQ+ members.

Recent stats show poverty rates for LGBTQ+ people dropped post-COVID but remain higher: 17% for LGBT in 2021 vs. 12% non-LGBT, 21% for transgender, and 26% for LGBT families with children. People of color in these groups face even higher rates.

Measuring Poverty: Methods and Indicators

Many countries measure poverty with income thresholds, updated annually for inflation. In the US, the Census Bureau uses data from the Consumer Price Index.

This includes thresholds for different family sizes. Everyone in a household below it is considered in poverty. Excluded are those in prisons, nursing homes, military barracks, college dorms, and under-15s whose income can't be determined. Income thresholds are one way to measure it.

Strategies for Reducing Poverty

The UN and World Bank push to reduce poverty, aiming for under 3% globally by 2030. Actions include installing wells for clean water, educating farmers for better yields, building shelters and schools, and improving healthcare with clinics and hospitals.

Communities, governments, and corporations must work together to improve conditions. This involves better socioeconomic policies, fighting racism, adjusting wages to living costs, offering paid leave, and promoting pay equity.

What Countries Have the Highest Poverty Rates?

Countries with the highest rates are South Sudan at 82.30%, Equatorial Guinea at 76.80%, Madagascar at 70.70%, Central African Republic at 68.80%, and Burundi at 64.09%.

Which States Have the Highest Poverty Rates?

As of 2024, Louisiana has 19.60%, Mississippi 19.40%, New Mexico 18.40%, West Virginia 16.80%, Kentucky 16.50%, and the District of Columbia 16.50%.

Can Poverty Be Solved?

It's complicated. Social welfare, philanthropy, and access to water, food, and healthcare help, but more is needed. Programs for skills, jobs, and education offer a long-term solution.

The Bottom Line

Poverty is the state where people and communities can't meet a minimum living standard due to lacking resources like finances, healthcare, education, water, and infrastructure. It stems from factors like race, sexual identity, and education access.

Organizations like the UN and World Bank warn poverty will persist beyond 2030 and call for policies to improve living quality for all.