What is Poverty Line?

The adequate minimum threshold income level or per capita expenditure for a country’s population is known as Poverty Line. Simply put, it is a cut-off point on the Line of Distribution that divides a country’s population into poor and non-poor. Poverty Line is determined in terms of Monthly Per Capital Expenditure (MPCE) or Calorie Intake. 

Poverty Line is the amount of money an individual requires to meet his basic needs. Hence, it is defined as the money value of goods and services required by an individual to provide basic welfare. Poverty Line is used for the measurement of the extent of poverty in a country. People who are living or have income below the poverty line are known as Poor. However, people who are living or have income above the poverty line are known as Non-poor. Mass poverty is a situation in which a large section of people in the economy is deprived of basic necessities. 

Poverty Lines of different countries are different and depend upon their idea of poverty. In developed countries with advanced living standards and welfare concepts, the poverty line is high. It is because the basic standard of living in developed countries consists of higher consumption requirements and accessibility to different goods and services. However, in less developed countries, the basic requirements of people are low and mostly include essential consumption goods that they need to sustain life. Therefore, the poverty line in these countries is set by the welfare standard in the economy.

Poverty refers to a state in which an individual is unable to fulfil even the basic necessities of life. The minimum requirements include food, clothing, shelter, education, and health facilities. A nation suffers from a cycle of poverty when a large portion of the population is deprived of even the most basic necessities of life for an extended period. If the minimum needs are not fulfilled, a person has to undergo pain and suffering. Sickness and disabilities render him helpless in all aspects of life. Generation after generation person who lives in poverty grows in poverty and dies in poverty. The population either breeds or multiplies itself.