WHAT IS AN EXAMPLE OF Absolute Poverty AND Relative Poverty?

Question

WHAT IS AN EXAMPLE OF Absolute Poverty AND Relative Poverty?

Answer 1

Absolute poverty is a genuine absence of the essential material goods needed for survival: food, shelter, clothing, health care, etc. Relative poverty is a lack of conveniences and other wanted items that most others have but are not necessary for life. For example, somebody living on the street is living in absolute poverty, while somebody who cannot afford a television set or a computer is living in relative poverty.

Answer 2

A third world country (India or Mexico) is absolute poverty and USA is an example of a relative-poverty situation.

In absolute poverty, there is no real income or wealth. People actually starve due to lack of resources. Basic needs are actually unfulfilled. People cannot borrow and there are no opportunities. They are impoverished by the fact that they are in that country or region. They never had the choice of being able to borrow or live frugally to avoid banktrucy.

In relative poverty, people are indebted. They don't die of scarcity or hunger. Rather they are imporverished by overspending and lack of financial ability. There are opportunities but people render themselves financially sick due to excessive spending, heavy indebtness, divorce situation or crime. There is no dearth of basic necessities. In USA, people become poor when they default on payments, have huge credit card balances and owe child support. They are impoverished by their decisions and choices.

Bottomline, an absolutely poor can survive in the world of relatively poor, but not vice versa. :)