Poverty
On the File menu, click Print to print the information.
Poverty
I. Introduction

Poverty, condition of having insufficient resources or income. In its most extreme form, poverty is a lack of basic human needs, such as adequate and nutritious food, clothing, housing, clean water, and health services. Extreme poverty can cause terrible suffering and death, and even modest levels of poverty can prevent people from realizing many of their desires. The world’s poorest people—many of whom live in developing areas of Africa, Asia, Latin America, and eastern Europe—struggle daily for food, shelter, and other necessities. They often suffer from severe malnutrition, epidemic disease outbreaks, famine, and war. In wealthier countries—such as the United States, Canada, Japan, and those in western Europe—the effects of poverty may include poor nutrition, mental illness, drug dependence, crime, and high rates of disease.

Extreme poverty, which threatens people’s health or lives, is also known as destitution or absolute poverty. In the United States, extreme poverty is traditionally defined as having an annual income that is less than half of the official poverty line (an income level determined by the Bureau of the Census). Extreme poverty in developing nations, as defined by international organizations, means having a household income of less than U.S.$1 per day. Relative poverty is the condition of having fewer resources or less income than others within a society or country, or compared to worldwide averages. In developed countries, relative poverty often is measured as having a family income less than one-half of the median income for that country.

The reasons for poverty are not clear. Some people believe that poverty results from a lack of adequate resources on a global level—resources such as land, food, and building materials—that are necessary for the well-being or survival of the world’s people. Others see poverty as an effect of the uneven distribution of resources around the world on an international or even regional scale. This second line of reasoning helps explain why many people have much more than they need to live in comfort, while many others do not have enough resources to live.