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Poverty & Wealth Concentration

Defining & Measuring Poverty

Poverty is measured in two ways: absolute poverty (lacking basic necessities — food, shelter, clean water) and relative poverty (having significantly less than the average in your society). The World Bank's extreme poverty line of $2.15 per day captures absolute deprivation; the U.S. federal poverty line ($31,200 for a family of four in 2025) attempts to define a minimum standard of living. Globally, extreme poverty has declined dramatically — from 36 percent of the world population in 1990 to under 9 percent by 2024 — yet over 700 million people remain in extreme poverty. Within wealthy nations, relative poverty persists at stubbornly high rates, with children and single-parent households disproportionately affected.

Poverty & Wealth Concentration

Defining & Measuring Poverty

Poverty is measured in two ways: absolute poverty (lacking basic necessities — food, shelter, clean water) and relative poverty (having significantly less than the average in your society). The World Bank's extreme poverty line of $2.15 per day captures absolute deprivation; the U.S. federal poverty line ($31,200 for a family of four in 2025) attempts to define a minimum standard of living. Globally, extreme poverty has declined dramatically — from 36 percent of the world population in 1990 to under 9 percent by 2024 — yet over 700 million people remain in extreme poverty. Within wealthy nations, relative poverty persists at stubbornly high rates, with children and single-parent households disproportionately affected.