What is the poverty line?

The poverty line represents the minimum income threshold that is considered necessary for individuals or families to meet their basic needs, such as food, shelter, and clothing. This income level is established by government agencies and is adjusted periodically to account for inflation and changes in the cost of living. Understanding the poverty line is crucial for assessing economic well-being and informing policies aimed at poverty reduction, social services, and welfare programs.

This definition highlights the focus on subsistence rather than average or median income measures, which might include those who are financially stable or wealthy. The poverty line specifically aims to identify those struggling to meet basic human needs, which is essential for directing resources and support where they are most needed.