Absolute and Relative Poverty.

As we know, poverty in this country is normally measured in relative terms, not absolute. As the Guardian points out:

Using the most commonly accepted definition of relative poverty – based on household income after payment of housing costs –
……

poverty is having a household income below 60% of the national average.

Yes, we all know that, I just like to keep pointing it out. When we talk of child poverty, poverty in general, this is what is meant, not that people have insufficient money, but that they have less than others. If incomes for the rich rise faster than those for the low paid, then we can have an increase in poverty by our measurements, despite the fact that low incomes are rising in real terms. It’s an argument about equality, not one about actual levels of income.

But what really gets me is this line:

About 1.9 million
pensioners have been lifted out of absolute poverty since 1997, thanks
to an £11bn investment in higher pensions and a pension credit.

An absurd debasement of the word investment. This is current spending, not even Gordon Brown or Len Crook would try to claim this as investment. It just sounds so much better though, doesn’t it?

7 responses

  1. Jeez, I think I was living in poverty when I was a student. Why did nobody tell me this at the time? All my friends wanted to do was play with my Playstation on my 42″ widescreen TV with no license, instead of trying to help me out of my desperation. Shame on them. I blame society.

  2. Andrew Gleadall Avatar
    Andrew Gleadall

    Not sure you’re right about the one eyed bandit™ – he never describes spending as anything other than ‘investment’. It’s one of his golden rules apparently.

  3. As an adult, I still bear the scars of the poverty I knew as a child. Asleep at night I am haunted by eerie whisperings that tell me if I work hard, work smart, do right by others and try to make responsible choices I can create a better life for me and my family. My dreams usually end just before a massive wealth redistrubition plan arrives to save me from having to live an otherwise productive life.

  4. Tim
    Take your point re: absolute poverty, though when people whine about the number still in poverty it is worth explaining that most of the ‘poor’ these days are significantly better off in absolute terms than a decade or two ago. Many don’t seem to realise this.
    I put an extensive post on the DWP and IFS reports on my New Economist weblog yesterday. It may be of interest to readers.

  5. “most of the ‘poor’ these days are significantly better off in absolute terms than a decade or two ago”
    Most of the ‘poor’ these days are significantly better off in absolute terms than the rich were a hundred or two years ago.
    You can’t argue for absolute standards of poverty, it has to imply the lack of sufficient resources to participate in normal society.
    Theat doesn’t mean that quite a lot of the poor couldn’t participate in normal society if they lived their lives differently, obviously, but a lot of people make money out of the idiotic choices poor people make, and if that were to be encouraged to change we’d be penalising enterprise, no?
    Tim adds: I only want the terms of debate to be clear. When and where are people talking about relative poverty and when about absolute poverty? When are we talking about there being insufficient wealth for all to eat and when are we talking about the desire for greater equality of incme?
    That’s all, just clear phrases so that we can differentiate between the situations.

  6. no

  7. no comments.

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