Poverty
...shelter, safe drinking water, ability to learn, and the ability to have a well paying job or career. Poverty can affect individuals or groups of people and is not only a problem in the developing nations but can also affect the developing countries. Poverty is sometimes referred to as being poor, homelessness, or living in what is referred to as the “ghetto.”
The common method that is used to measure or determine poverty at the country level is based on the household income or by the consumption levels. To be considered poor, a person’s consumption or income level must fall below the poverty line. However, these poverty lines vary across time and each country has its own poverty line they use in order to accommodate for its level of consumption and values. On the other hand when trying to estimate poverty worldwide, the poverty line is the same and is expressed in an accepted unit for all the countries. The World Bank uses reference lines set at $1 and $2 per day.
A working poor adult can qualify for a package of income-tested transfers; these include Food Stamps, and Earned Income Tax Credit. However these benefits vary depending on their income and only about twenty percent of the poor families receive these types of benefits. The Food Stamp Program, or FSP, help assist families in purchasing food. However, to be eligible for this benefit package the households income cannot exceed 130 percent of the relevant poverty line.2 Recipients of the Food Stamp Program are usually provided with debit cards or food stamps, which provide both food and income support, that they can use to purchase or buy the food. Their gross income and deductible expenditures will determine the amount of aid that they can receive. Since 1975 the federal tax code has provided an earned income tax credit which is a credit against income tax liability.2 In order to qualify for this...
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