How does absolute poverty differ from relative poverty?

Absolute poverty and relative poverty represent two distinct concepts in the study of poverty and economic inequality. Absolute poverty is characterized by a lack of adequate resources, meaning individuals or families cannot meet basic needs for survival, such as food, shelter, and essential healthcare. This state is often quantified using a specific income threshold that determines whether a person or household has access to the minimum requirements necessary for a basic standard of living.

In contrast, relative poverty focuses on the economic status of an individual in comparison to others within a society. It considers income inequality and how individual circumstances affect one's living conditions compared to the broader community. In this view, someone may be considered relatively poor if they earn significantly less than the average income within their society, even if they can meet their basic needs.

Understanding this distinction is crucial because it highlights that absolute poverty can exist independently of societal context, while relative poverty inherently depends on the social and economic conditions surrounding an individual. Thus, the concept of absolute poverty provides a measurement of fundamental survival needs, while relative poverty emphasizes disparities and inequality within a community.