Question

Is there a difference between Absolute and Extreme Poverty? If so, what is it?

Answer 1

Absolute poverty is when household income is below a certain level, which prevents individuals or families from meeting basic living needs including food, shelter, safe drinking water, education, health, and more.

In this state of poverty, even though the country is growing economically, it has no impact on people living below the poverty line. Absolute poverty compares households on a fixed income level, and this varies from country to country depending on the general economic situation.

Extreme poverty is when a household earns 50% below average household income, so they have little money but not enough money to buy anything more basic. In other words, this type of poverty can vary depending on the country's economic growth.

Extreme poverty is sometimes described as "poverty" because people who fall into this category do not live in full poverty but do not achieve the same standard of living as everyone else in the country. This can be TV, Internet, clean clothes, a safe home (good environment without abuse or neglect), or even education.
Extreme poverty can also be permanent, meaning that some families do not have the opportunity to live as other people in the same society currently have access. They are "stuck" in a low-income box.