The Official Poverty Measure (OPM) compares a measure of a family’s financial resources to a dollar...

The Official Poverty Measure (OPM) compares a measure of a family’s financial resources to a dollar amount representing the family’s needs. Families with resources less than needs are considered to be in poverty. The measure of needs is the cost of a thrifty food basket multiplied by 3.

(1) What was the rationale for this calculation when it was originally created-- in other words, why was THE COST OF A THRIFTY FOOD BASKET multiplied by 3)?

(2) Why might this calculation (i.e., thrifty food basket x 3) no longer be a valid measure of a family’s needs?

(3) What is ONE way that the Supplemental Poverty Measure (SPM) fixes this problem?

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Expert Solution

Rahul Sunny answered 1 year ago

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