Poverty

Key Vocabulary Absolute poverty Relative poverty Standard of living Buying power Poverty cycle Economic security Disposable income LICOs LIMs BMB

What is poverty?

Canada

Canada does not have a standard definition.

Absolute Poverty

Lacking the amount of money needed to meet basic needs such as food, clothing, and shelter. (Absolute)

Relative Poverty

People are poor if they fall below prevailing standards of living in a given societal context. (Relative)

Canada

Canada uses 3 different measures to help understand poverty.

CanadaWe use:

1.Low Income Cut-offs (LICOs)

2.Low Income Measures (LIMs)

3.Market Basket Measure (MBM)

Low Income Cut-offs (LICO)

spends a higher percentage of its income on “basic needs”

Market Basket Measure (MBM)

lacked any item required to maintain long-term physical well-being.

Low Income Measures (LIM)

half the average family income.

PovertyLacking the amount of money necessary to meet basic needs such as food, clothing, and shelter. (Absolute)

People are poor if they fall below prevailing standards of living in a given societal context. (Relative)

Key Vocabulary Absolute poverty Relative poverty Standard of living Buying power Poverty cycle Economic security Disposable income LICOs LIMs BMB