poverty introduction for assignment

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What Is Poverty?

Understanding poverty, aspects of poverty, discrimination and poverty, how poverty is measured, how to reduce poverty, the bottom line, what's poverty meaning, causes, and how to measure.

James Chen, CMT is an expert trader, investment adviser, and global market strategist.

Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas' experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.

Investopedia / Laura Porter

The term poverty refers to the state or condition in which people or communities lack the financial resources and essentials for a minimum standard of living . As such, their basic human needs cannot be met. People and families who live in poverty may go without proper housing, clean water, healthy food, and medical attention. Each nation may have its own criteria for determining the poverty line and counting how many of its people live in poverty. Poverty is a socioeconomic condition that is the result of multiple factors—not just income. These factors include race, sexual identity, sexual orientation, and little to no access to education, among others.

Key Takeaways

• Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.
• Poverty-stricken people and families might go without proper housing, clean water, healthy food, and medical attention.
• Poverty is an individual concern as well as a broader social problem.
• Welfare programs are used by governments to help alleviate poverty.
• Poverty is the result of multiple factors, not simply income.

Poverty refers to the lack of adequate financial resources such that individuals, households, and entire communities don't have the means to subsist or acquire the basic necessities for a flourishing life. This means being so poor as to struggle to obtain food, clothing, shelter, and medicines.

Poverty is both an individual concern as well as a broader social problem. On the individual or household level, not being able to make ends meet can lead to a range of physical and mental issues. At the societal level, high poverty rates can be a damper on economic growth and be associated with problems like crime, unemployment , urban decay, education, and poor health.

Governments often put social welfare programs in place to help lift individuals, families, and communities out of poverty. Some countries have stronger welfare states (social safety nets) than others. For instance, the U.S. tends to be much more individualistic and shuns welfare programs. European countries, in comparison, have a much broader range of welfare programs and support for those in need.

Poverty in the U.S.

Poverty status in the United States is assigned to people who do not meet a certain income threshold, which is set by the Department of Health and Human Services (HHS) . Poverty rates in the United States, or the percentage of the U.S. population living in poverty, are calculated by the U.S.  Census Bureau .

When measuring poverty, the U.S. Census Bureau excludes the following people:

• Institutionalized people
• People living in military quarters
• People living in college dormitories
• Individuals under the age of 15

According to the latest Census, 37.9 million people in the U.S. lived in poverty in 2021, up from 37.2 million in 2020.

Each year, the Census Bureau updates its poverty threshold statistics. The table below shows the 2022 income thresholds for those in poverty. Each column represents the number of people living in a household under the age of 18.

• In 2022, the poverty income threshold for a family of four with two children under the age of 18 is $29,678 per year.
• In 2022, for two people over age 65 with no children under 18, the poverty threshold comes in at $17,689 per year.
• We can see that the income level for the poverty threshold increases for families with more children under 18.

The poverty thresholds, as well as the number of children under the age of 18 in a home, are important because they help determine how government aid can be allocated, such as food assistance and medical care. The measurement for those in poverty uses pretax income or income before taxes are taken out by the Internal Revenue Service (IRS) .

Global Poverty

Poverty has decreased in developed countries since the Industrial Revolution . Increased production reduced the cost of goods, making them more affordable, while advancements in agriculture increased crop yields , as well as food production.

The international poverty line is a monetary threshold under which an individual is considered to be living in poverty. This figure is calculated by taking the poverty threshold from each country—given the value of the goods needed to sustain one adult—and converting it into U.S. dollars. The current international poverty line is $2.15 per day.

Many people around the globe still struggle to make ends meet. According to the World Bank , an estimated 719 million people lived in extreme poverty—defined as surviving on less than the $2.15 per day line—by the end of 2020.

It's estimated that more than 40% of the world's population lives in poverty, with the United States scoring the highest among developed nations. According to a report from Frontiers, communities of color are more susceptible to poverty because of "racist notions of racial inferiority and frequent denial of the structural forms of racism and classism" globally and within the U.S.

COVID-19 was responsible for plunging roughly 100 million more people into extreme poverty, according to the World Bank.

Poverty and Children

The impact of poverty on children is substantial. Children who grow up in poverty typically suffer from severe and frequent health problems; infants born into poverty have an increased chance of low birth weight, which can lead to physical and mental disabilities.

In certain developing countries, poverty-stricken infants are nine times more likely to die in their first month compared to babies born in high-income countries. Those who live may have hearing and vision problems.

Children in poverty tend to miss more school due to sickness and endure more stress at home. Homelessness is particularly hard on children because they often have little to no access to healthcare and lack proper nutrition, which often results in frequent health issues.

What Causes Poverty?

Poverty is a difficult cycle to break and often passes from one generation to the next. It is often determined by socioeconomic status, ethnicity, gender, and geography. Many people are born into poverty and have little hope of overcoming it. Others may fall into poverty because of negative economic conditions, natural disasters , or surging living costs, as well as drug addiction, depression, and mental health issues.

Access to good schools, healthcare, electricity, clean drinking water, and other critical services remains elusive for many and is often determined by socioeconomic status, gender, ethnicity, and geography. Other root causes of poverty include:

• Limited to no job growth
• Poor infrastructure
• Conflict and war
• High cost of living
• Social barriers
• Lack of government support

For those able to move out of poverty, progress is often temporary. Economic shocks, food insecurity , and climate change threaten their gains and may force them back into poverty.

Typical consequences of poverty include alcohol and substance abuse, little to no access to education, poor housing and living conditions, and increased levels of disease. Heightened poverty is likely to cause increased tensions in society as inequality increases. These issues often lead to rising crime rates in communities affected by poverty.

As noted above, poverty isn't simply related to income levels. In fact, there are a number of factors that can push people into or below the poverty line. Discrimination is just one of those issues. Put simply, people are prevented from living with and enjoying certain rights because of who they are. Here's why.

In some cases, governments may put certain laws and regulations that prevent certain individuals or communities from accessing services, such as healthcare, education, or social services. They may also be denied access to the labor market and/or housing, which can prevent them from reaching a suitable standard of living. In other cases, deep-rooted societal beliefs can isolate individuals, families, and entire communities.

Some of the most common groups of people who may experience this type of discrimination include (but aren't limited to):

• People living with HIV/AIDS
• Black, Indigenous, and People of Color
• Women, including single mothers
• Members of the LGBTQ+ community

According to statistics from the Williams Institute at the UCLA School of Law, poverty rates among members of the LGBTQ+ community have dropped since the COVID-19 pandemic. But rates are still higher than those who don't identify as LGBTQ+. The most recent report showed that:

• 17% of LGBT people in the U.S. lived in poverty in 2021 compared to 12% in non-LGBT communities
• 21% of transgender people lived in poverty in the U.S. in 2021 compared to 20% of cisgender bisexual women
• 26% of LGBT families with children experienced poverty in 2021

The report also indicated that LGBTQ+ people of color—notably, "Black, Latinx/Hispanic, Native Hawaiian/ Pacific Islander (NH/PI), American Indian/Alaskan Native (AI/AN), and Multiracial people"—are more likely to experience poverty compared to White or Asian Americans.

Poverty is commonly measured using income thresholds in many countries, including the United States. Centralized bodies like the Census Bureau collect data and update the information on an annual basis based on inflation . This information, which is reported through the Consumer Price Index for All Urban Consumers (CPI-U) , generally includes income thresholds compiled from different sizes and types of families/households. Each family member in a household that falls under the threshold is considered to be in poverty, according to the Census Bureau.

Certain types of individuals are not included in the count as their level of poverty cannot be determined. These groups include:

• People within certain group settings like prisons and nursing homes
• Individuals living in military barracks
• Those living in college dorms
• People under the age of 15 whose income cannot be determined

Keep in mind that using income thresholds is just one way that countries measure poverty. But there are other ways to determine who lives above and below the poverty line. Some countries may use an absolute figure like the one used by the World Bank. As noted above, the organization determined that people who live below the $2.15-per-day limit are in poverty.

The United Nations and the World Bank are major advocates of reducing world poverty. The World Bank has an ambitious target of reducing poverty to less than 3% of the global population by 2030. Some of the actionable plans to eliminate poverty include the following:

• Installing wells that provide access to clean drinking water
• Educating farmers on how to produce more food
• Constructing shelter for those in need
• Building schools to educate disadvantaged communities
• Providing enhanced access to better healthcare services by building medical clinics and hospitals

For poverty to be eradicated as the World Bank sets out to do, communities, governments, and corporations need to collaborate to implement strategies that improve living conditions for the world’s poor. Among these strategies may include boosting socioeconomic conditions, fighting and eliminating systemic racism, establishing minimum wages that align with the cost of living, providing paid leave, and promoting pay equity among other things.

What Countries Have the Highest Poverty Rates?

The countries with the highest poverty rates include South Sudan (82.30%), Equatorial Guinea (76.80%), Madagascar (70.70%), Guinea Bissau (69.30%), and Eritrea (69.00%).

Which States Have the Highest Poverty Rates?

As of 2023, the states with the highest poverty rates were Mississippi (18.80%), Louisiana (17.40%), New Mexico (16.20%), Arkansas (14.70%), and Alabama (14.60%).

Can Poverty Be Solved?

The answer to this question is complicated and nuanced. If it were easy or obvious, poverty would no longer be such a big issue. Social welfare programs and private philanthropy are ways to provide for those in poverty, along with access to essentials like clean water, good food, and adequate healthcare. However, more is needed. Programs that encourage impoverished individuals to obtain skills, jobs, and education are also important as a longer-term cure.

Poverty is defined as the state or condition where people and communities cannot meet a minimum standard of living because they lack the proper resources . These include (but aren't limited to) financial resources, basic healthcare and education, clean drinking water, and infrastructure. Living in the socioeconomic condition of poverty is a result of multiple factors not simply including race, sexual identity, sexual orientation, and access to education, among others. Organizations like the United Nations and the World Bank, which say that poverty will continue to grow well beyond 2030, urge nations to fight poverty by implementing policies and regulations that can drastically improve the quality of living for all communities.

U.S. Department of Health & Human Services. " Poverty Guidelines ."

U.S. Census Bureau. " Poverty - Surveys & Programs ."

U.S. Census Bureau. " How the Census Bureau Measures Poverty ."

United States Census Bureau. " Income, Poverty and Health Insurance Coverage in the United States: 2021 ."

U.S. Census Bureau. " Income and Poverty in the United States: 2020 ."

U.S. Census Bureau. " Poverty Thresholds ."

U.S. Department of Health & Human Services. " Programs that Use the Poverty Guidelines as a Part of Eligibility Determination ."

The World Bank. " Fact Sheet: An Adjustment to Global Poverty Lines ."

The World Bank. " Global Progress in Reducing Extreme Poverty Grinds to a Halt ."

Frontiers. " Poverty, Racism, and the Public Health Crisis in America ."

The World Bank. " Poverty ."

National Library of Medicine. " Distribution and Determinants of Low Birth Weight in Developing Countries ."

The World Bank. " A Child Under 15 Dies Every Five Seconds Around the World – UN Report ."

UNICEF. " Levels and Trends in Child Mortality ."

UCLA School of Law Williams Institute. " LGBT Poverty in the United States ."

The World Bank. " Ending Extreme Poverty ."

World Population Review. " Poverty Rate by Country 2023 ."

World Population Review. " Poverty Rate by State 2023 ."

• A History of Income Inequality in the United States 1 of 30
• How Education and Training Affect the Economy 2 of 30
• Education vs. Experience: Which One Gets the Job? 3 of 30
• Unemployment Rate by State 4 of 30
• Can a Family Survive on the U.S. Minimum Wage? 5 of 30
• The Economics of Labor Mobility 6 of 30
• Forced Retirement: What it is, How it Works, FAQ 7 of 30
• Predatory Lending: How to Avoid, Examples and Protections 8 of 30
• Unbanked: What It Means, Statistics, Solutions 9 of 30
• Underbanked: What It Is and Who They Are 10 of 30
• Underinsurance: What it is, How it Works, FAQ 11 of 30
• The History of Unions in the United States 12 of 30
• What Is Middle Class Income? Thresholds, Is It Shrinking 13 of 30
• What's Poverty? Meaning, Causes, and How to Measure 14 of 30
• Gini Index Explained and Gini Coefficients Around the World 15 of 30
• Measuring Inequality: Forget Gini, Go with the Palma Ratio Instead 16 of 30
• Lorenz Curve 17 of 30
• What Is the Human Development Index (HDI)? 18 of 30
• What Are the Criticisms of the Human Development Index (HDI)? 19 of 30
• Poverty Trap: Definition, Causes, and Proposed Solutions 20 of 30
• Conflict Theory Definition, Founder, and Examples 21 of 30
• America's Middle Class Is Losing Ground Financially 22 of 30
• Hollowing Out: What It Means, How It Works 23 of 30
• Social Justice Meaning and Main Principles Explained 24 of 30
• Economic Justice: Meaning, Examples of How to Achieve It 25 of 30
• Welfare Economics Explained: Theory, Assumptions, and Criticism 26 of 30
• Egalitarianism: Definition, Ideas, and Types 27 of 30
• The Nordic Model: Pros and Cons 28 of 30
• Equity-Efficiency Tradeoff: Definition, Causes, and Examples 29 of 30
• The Economic Message Behind Martin Luther King Jr.'s 'Dream' Speech 30 of 30

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19.13: Assignment- Living in Poverty

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In this assignment, you will apply things you’ve learned about in this course, particularly this module on work and the economy, to consider what life would be like to budget and live as a parent in a family below the poverty line. After you create a monthly budget with a breakdown of expenses, you’ll write a reflection paper about the experience and its application to the course materials.

STEP 1 : Imagine you are a single parent with two kids, ages 1 and 6 (a first-grader). You work a full-time minimum wage job. Make a bulleted list with all of the categories below and write a paragraph for each, explaining how you would plan for monthly expenses.

• Family: Describe your fictional family. Where specifically do you work? What are your kids names and interests?
• Budget : What is you annual income at the current minimum wage rate? What is your monthly income?
• Housing : Where will your family live? Look up actual apartments or houses using websites like Zillow or Craigslist to find a good place for your family to live. Where is it relation to the place you work?
• Childcare and Education : Look up your new address to find what school your children will attend. What is the school’s rating? Next, you will need to find full-time childcare for your youngest child. Look up prices and options in your area (having family or someone watch him or her voluntarily is not an option in this case). How much will it cost?
• Food : write down everything your family will eat, in detail, for every meal of one day. Estimate the expenses for each of those items. Use this daily information to create a weekly grocery list. Look up prices and write down how much you will need to spend on groceries per month.
• Utilities and phone : If not included in the rent, look up average utility costs in your area to pay for electricity, water, garbage, cable, internet, and phone bills.
• Transportation : How will you get around? Do you have a car payment? If you have a car, include an estimated monthly cost. What will you pay in gas expenses? Or is public transportation a feasible option?
• Others : You’ll need to reserve some funds for needs like diapers, wipes, clothes, toilet paper, toiletries, etc. Look up average needs and costs and include that information here.
• Miscellaneous : What other monthly expenses do you anticipate needing for you or your family?

STEP 2 : Write up an analysis paper between 400-600 words, describing your reactions to this exercise, as well as its sociological implications. Consider the following questions:

• Did anything surprise you about this exercise?
• Do you feel that it is reasonable to live off the minimum wage in America?
• What expenses seemed to be the most burdensome?
• How does this exercise tie in with concepts you learned about in this module? Specifically tie in at least two specific terms or concepts.
• What recommendations would you make for government or economic programs to better aid those in poverty?
• Assignment: Living in Poverty. Provided by : Lumen Learning. License : CC BY: Attribution

Module 16: Work and the Economy

Assignment: living in poverty.

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Poverty: A Very Short Introduction

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Millions of people worldwide live in poverty. Why is that? What has been done about it in the past? And what is being done about it now? Poverty: A Very Short Introduction explores how the answers to these questions lie in the social, political, economic, educational, and technological processes that impact all of us throughout our lives—from the circumstances of birth and gender to access to clean water and whether it is wartime or peacetime. The degree of vulnerability is all that differentiates us. This VSI looks at the history of poverty, the practical and analytical efforts made to eradicate it, and the prospects for further poverty alleviation in the future.

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Browse Course Material

Course info, instructors.

• Prof. Esther Duflo
• Prof. Abhijit Banerjee

Departments

As taught in.

• Globalization
• Developmental Economics
• Social Welfare
• Global Poverty

Learning Resource Types

The challenge of world poverty, assignments.

See sample essays from students on the Poor Economics website.

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Poverty and hunger are inextricably linked. Poverty causes hunger, but not every person living in poverty faces chronic hunger. However, almost all people facing chronic hunger are also living in poverty.

Overcoming poverty will require holistic approaches to address the root causes. For example,  globally, millions of people are living with food insecurity and hunger because they simply cannot afford to buy enough food, cannot afford the farming supplies they need to grow enough good food of their own, or live in regions where climate change is affecting a landscapes ability to support viable agriculture. Rural households are typically the most affected by the consequences of poverty and hunger. In addition to causing hunger, poverty limits a rural community’s ability to invest in its own development. Often, rural girls living in poverty will be kept out of school to save money. This contributes to the gender disparity in the education, and between rural and urban girls. The lack of education leads to higher adolescent birth rates which can over-burden an already economically strained community, perpetuating a cycle of gender inequality, poverty, and hunger.

Pulling people out of poverty will not be accomplished through unsustainable and unreliable charity. It will require social justice to ensure basic human rights are met, leaving no one behind, while allowing everyone the opportunity to fulfill their right to a dignified and decent life.  For many counties and societies this will include building the capacity of women and men and may involve skills training, enhanced education, and knowledge mobilization to provide the necessary tools and resource to improve livelihoods and communities to build better futures for themselves and their children.

This assignment will look at food insecurity for a named country. The collected information will be based on a thorough literature review of the issues and pathways for solutions.

• Looking at your own country or a country of interest, assess and report on the food insecurity situation at the national level (what is the status of food security for this country).
• What is the food insecurity situation for this community?
• What are the current strategies being implemented (if any)? What is working and not working?
• What are some strategies and programs you would recommend to help pull this community out of food insecurity?

Introduction to the Sustainable Development Goals (SDGs) Copyright © by Jocelyn Baker is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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