Measuring poverty
Have you ever heard of the word 'poverty'? It means a situation where people do not have enough money or resources to meet their basic needs like food, shelter, and clothing.
To measure poverty, we need to know who all are poor and how poor they are. In general, we measure poverty in terms of income or consumption expenditure. Do you know what income is? It is the money people earn from their jobs or businesses. Consumption expenditure means the amount of money people spend on buying things like food, clothes, and medicine.
There are many ways to measure poverty, but one of the most famous measures is called the 'poverty line'. The poverty line is the minimum amount of income or consumption expenditure that is required for a person or family to meet their basic needs. Government or organizations decide the poverty line by looking at the cost of basic needs like food, clothing, and shelter.
When a person's income or consumption expenditure falls below the poverty line, they are considered 'poor'. For example, if a poverty line is $2 per day per person, and a person earns or spends less than $2 per day, they are considered poor. Similarly, if a family of four earns or spend less than $8 per day, they are considered poor.
By measuring poverty, we can get an idea of how many people are poor, where they live, and how poor they are. This information can be used to design policies or programs to help poor people. For example, governments can provide subsidies or cash transfers to people who are below the poverty line. They can also invest in education and skill development to help poor people earn more money.
To measure poverty, we need to know who all are poor and how poor they are. In general, we measure poverty in terms of income or consumption expenditure. Do you know what income is? It is the money people earn from their jobs or businesses. Consumption expenditure means the amount of money people spend on buying things like food, clothes, and medicine.
There are many ways to measure poverty, but one of the most famous measures is called the 'poverty line'. The poverty line is the minimum amount of income or consumption expenditure that is required for a person or family to meet their basic needs. Government or organizations decide the poverty line by looking at the cost of basic needs like food, clothing, and shelter.
When a person's income or consumption expenditure falls below the poverty line, they are considered 'poor'. For example, if a poverty line is $2 per day per person, and a person earns or spends less than $2 per day, they are considered poor. Similarly, if a family of four earns or spend less than $8 per day, they are considered poor.
By measuring poverty, we can get an idea of how many people are poor, where they live, and how poor they are. This information can be used to design policies or programs to help poor people. For example, governments can provide subsidies or cash transfers to people who are below the poverty line. They can also invest in education and skill development to help poor people earn more money.