How is poverty calculated?

Poverty is typically calculated using income thresholds that determine whether an individual or family has enough financial resources to meet basic needs such as food, shelter, and clothing. In the United States, for example, the federal poverty line is established based on the size of the household and adjusted annually for inflation. Additional measures, like the Supplemental Poverty Measure, take into account expenses and resources beyond income, providing a more nuanced view of poverty. Various countries may use different methodologies, reflecting local economic conditions and social policies.