Question

In: Economics

If you had to define the poverty line, what would you expect people to be able...

If you had to define the poverty line, what would you expect people to be able to afford just above that line? For those below that line, what programs should the government offer to improve quality of life?

Solutions

Expert Solution

The traditional sense of the poverty line defines the limit to be $1.90 per day according to the World Bank that takes into account the amount needed for basic subsistence. It ignores the costs of living contingent on the location, the availability of resources and the other necessities of life. Hence, a person just above the poverty line may still be suffering from real poverty with respect to accessibility to shelter, clothing and other such necessities. Moreover, the measurement of salary to compare with the international limit of $1.90 per day faces criticism with reference to measurement as pre or post-tax earnings. Moreover, the real poverty would be higher since this measurement ignores the government benefits and poverty eradication plans that if not provided, would show a much worse image of poverty in the country. Therefore, a person who is able to afford just above the poverty line may be poor in real sense as they are neither the beneficiary of poverty programs and nor identified as poor. There tendency to get pushed below the line is the highest.

For the people below the poverty line, their condition is much worse and immediate as well as long term policy measures are essential from the government to eradicate this serious issue of poverty. Some immediate measures could be to provide benefits to the poor in terms of ration shops, subsidies for those below the line and reservations.Reforms with respect to paid leaves and flexible work schedules should be put in place. Minimum wages should be revised on a regular basis keeping in mind the inflation and increasing costs of living. Creation of jobs will foster employment and increase earnings. An investment in universal education with emphasis on early years in education will open up opportunities while creating an upskilled workforce. Health care should be made affordable and accessible to all. Finally, governmental support in areas of law and order and fairness in policy implementation will be essential to ensure the policies benefit the target groups.


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