Absolute Poverty is when people do not have enough money to meet the basic threshold that is needed for survival. People fall below this line and do not have enough money to buy food, shelter, clothing etc. that is needed for survival.
Relative Poverty is when people are poor when compared to others around them, but may still have enough money to survive. It is based on the cultural environment around them, not on a basic amount necessary for all humans to survive.
According to relative poverty, if you live in an expensive neighborhood, and you have everything you need to get by, but do not own luxurious things, you could still be said to be in poverty when compared to the people around you, even though you have everything you need. Relative poverty changes more often and adjusts to the changes in society (food and housing becoming more expensive in certain areas, more jobs etc.) whereas absolute poverty stays the same, and this could be problematic for absolute poverty, when comparing neighborhoods that differ, and when you compare cross-nationally.
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