What is the difference between Absolute Poverty and Relative Poverty?

Difference Between Absolute Poverty and Relative Poverty

Poverty can be defined as an economic situation where people are not able to fulfill their basic living needs. The poverty level is measured using the terms – Absolute Poverty and Relative Poverty. In this write-up, we will understand both the terms and try to figure out the Difference Between Absolute Poverty and Relative Poverty.

The term Absolute Poverty is used to measure a poverty level, where an individual is unable to meet the basic commodities which are necessary to have a sound life and other normal activities.

That means if anyone is struggling to get proper food, shelter, and clothing, he/she is in absolute poverty. The person in absolute poverty lack financial means to obtain commodities to sustain life.

The term Relative Poverty describes the standard of living compared with the economic standards of living of people in the same surroundings. Relative poverty happens if the total income is less than fifty percent of the average household incomes. The person or family falling under relative poverty have money to fulfill basic needs but can’t afford anything more than that.

The relative poverty is also known as ‘relative deprivation’ because the people under this category are not living in poverty but also not enjoying the same standard of living as others in the surrounding.

Difference Between Absolute Poverty and Relative Poverty

• Any person unable to obtain essential commodities like food, water, shelter, or clothes comes under absolute poverty. In contrast, relative poverty compares the economic condition of two people in the same environment.
• Income level is considered in absolute poverty; in relative poverty, income level is not considered as a person can be considered poor even after meeting all basic needs.
• Quality of life is poor in absolute poverty; quality of life is marginally better for those living under relative poverty.
• It is challenging to eradicate absolute poverty completely; relative poverty can be eliminated to a certain extent.

It is important to differentiate between absolute and relative poverty so that people can understand what life they are experiencing. Poverty is a severe condition and has got a severe impact on human lives. With the government’s help, people should strive hard to eradicate poverty in the country.