Difference Between Absolute And Relative Measure

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There are many different ways to measure poverty that are used in today’s world. Two of the main measures used is the absolute measure and the relative measure. In the United States a poverty line is created to determine poverty, but this is a very outdated measure. Poverty is currently defined as a deficiency of income due to economic reasons or other such reasons.
The United States uses an absolute poverty measure. This requires a constant poverty line. The line has a threshold, but the line remains constant over time. There are two main components in absolute measure of poverty: the poverty threshold and the family income that is compared to the threshold. Food consumption is looked at and a threshold is calculated afterwards. The threshold is then updated year to year based on inflation. The absolute measure of poverty is determined based on how much income is required for …show more content…

The needs of society change throughout time as well. A relative measure accounts for the changing needs of society. It tries to account for social exclusion and attempts to help fix it. People become excluded from society if they do not have all the required resources. Relative measures takes that into its measure. A disadvantage of this measure comes from the viewpoint that poverty is objective. Some believe that it is a scientific phenomenon and should be treated as such. Judgements on value should not be used to determine poverty, in their opinion.
Both absolute and relative measurements have their advantages and disadvantages. The main goal is to find a way to fight poverty. Absolute does it with a poverty line, while relative finds a shifting threshold. A combined measure might be a better suited measure for poverty. The current for the United States needs to be evaluated and possibly changed. Absolute measure does not seem the appropriate measure for a nation of that size and

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