What is relative poverty?

Relative poverty refers to the condition where an individual or group lacks the essential resources to meet a certain standard of living, particularly when compared to others within their society. This perspective emphasizes the social context of poverty, suggesting that one’s well-being is significantly affected by their economic status relative to others.

This concept recognizes that even if someone has enough income to meet their basic needs, they may still be considered poor if they are significantly worse off than those around them. For example, a family might have enough money for food and shelter but could still experience relative poverty if they cannot afford the same level of education, healthcare, or social activities that others in their community enjoy. This relative measure can have critical implications for social cohesion and individual self-esteem.

Other options reflect different aspects of poverty but do not capture its relative nature. Living on less than $1.25 a day is often associated with absolute poverty, which quantifies hardship based purely on a benchmark that defines who is in poverty regardless of societal comparisons. The inability to access healthcare services also speaks to a specific dimension of poverty rather than its relative aspect. Acquiring wealth without accumulation suggests a different economic phenomenon entirely and does not relate directly to the concept of poverty.