By: Aakash Soni

What is it?

Poverty when measured against other people in the region

If you make 50% of the median income of a certain area, then you can be considered to be in relative poverty

Impact

Positive ImpactHelps to define poverty lines for a specific

area, when not comparing to rest of the world

Spurs government to enact stronger welfare programs to lower percentage in relative poverty

Impact

Negative ImpactRelative poverty does not describe real

poverty because different regions have different levels of poverty

Creates disincentive to look for work or work longer hours

History

History

Effects on Society

By comparing a population with absolute poverty, like the United States, you find that not many people are in poverty.

But when comparing with relative poverty, that jumps from the single digits to 20%.

Effects on Society

Helps to determine if poverty is increasing or decreasing

If income distribution becomes more “equal”, then less poverty

If more “unequal”, then greater poverty

Effects on Society

Tax decreases have increased relative poverty

By lowering income tax, people keep a higher portion of their income, raising the median income

This affects people with above-average income the most, so it raises the relative poverty

Effects on Teens

Even though only the worst are in absolute poverty, many children cannot afford school, clothes, etc. because they are in relative poverty.

Teenagers in relative poverty are more likely to experiment with drugs, alcohol and risky behavior.

Effects on Teens

Since teens may not be able to afford education, they struggle throughout their lives and continue to live in poverty

Bibliography "Absolute Poverty Vs. Relative Poverty: The Search for Survival, Page 3 of 3 - Associated Content."

Associated Content - associatedcontent.com. 17 July 2009 <http://www.associatedcontent.com/article/603931/absolute_poverty_vs_relative_poverty_pg3.html?cat=17>. This site was useful because it provided information about what relative poverty was and how it was different from

absolute poverty. It also provided a few impacts about it. Based on the site, I would say it is a reliable source of information.

"Poverty - MSN Encarta." MSN Encarta : Online Encyclopedia, Dictionary, Atlas, and Homework. 17 July 2009 <http://encarta.msn.com/encyclopedia_761577020/poverty.html>. I used this site mostly to gain information about the history of relative poverty. It also contained the definition and

some effects of relative poverty. Since it is an encyclopedia, I would trust the information on this site.

"Poverty." Fairfield University | Faculty Web Server. 17 July 2009 <http://www.faculty.fairfield.edu/faculty/hodgson/Courses/so11/stratification/poverty.htm>. This site provided the visual seen in the powerpoint. It also contained a few more charts about poverty in the US. It

provided a few useful examples of relative poverty in society today. Since it is a university website, I would trust the information.

"Poverty threshold." Wikipedia, the free encyclopedia. 17 July 2009 <http://en.wikipedia.org/wiki/Poverty_threshold>. This site gave a good general overview of relative poverty. It also compared it with absolute poverty. Since the site

can be edited by the public, the information would have to be double-checked for accuracy.