Poverty is not just a low number on a bank statement. It is going without meals, choosing between medicine and rent, and watching your children fall behind because the school is underfunded. Economists measure it in absolute and relative terms. Absolute poverty means falling below a fixed threshold, like the World Bank's $2.15 per day. Relative poverty means earning far less than the median in your own society.

The distinction matters. A person in rural India living on $2 a day faces different challenges than a low-income worker in Detroit. Both are poor, but the nature of their deprivation differs. Absolute poverty has fallen dramatically over the past fifty years, driven by growth in China and India. Relative poverty has proven stickier, even in rich countries.

Poverty traps exist. A family that cannot afford transportation cannot get to better-paying jobs. A child who cannot afford glasses cannot learn to read. A farmer without credit cannot buy better seeds. Breaking these traps requires more than a single policy. Education, healthcare, infrastructure, and cash transfers all play a part. No country has eliminated poverty entirely, but some have come closer than others.

Poverty measures

• Absolute poverty line
• Relative poverty line
• Multidimensional poverty index
• Gini coefficient
• Human Development Index