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Poor individuals are in a much better frame of mind when they feel that their life position is not too badly comparable to other members of the society. A family in the United States that earns an annual income of $5,000 is constitutive of abject poverty, probably five times the mean income of many in developing countries. Compared to the plight faced by millions in the world under dangers of starving, the life of project inhabitants in the United States could be construed as luxurious.
The government of the United States utilizes a definition of absolute poverty for the identification of those individuals that cannot manage to afford the things they need for survival (Newman 310). Official United States poverty line includes the identification of yearly income amounts that one family requires for its basic needs to be met. This is based on only pre-tax income which is not inclusive of benefits, public housing, Medicaid, and food stamps. The amount is variable depending on the size of the family and, with reference to inflation, is adjusted annually. However, it does not account for differences in regions as concerns the cost of living. Officially, the poverty line applicable to a family consisting of four was $20,444 as yearly income (Newman 310).
The thrifty food plan has been used by the Department for Agriculture in the United States for the establishment of the dollar amount (Newman 310). Developed in the early sixties, is utilized for the calculation of subsistence diets, the basal minimum that a family requires in order to function well. After the cost is obtained, it is manipulated via multiplying it by three since research has proven that, on average, a family will spend approximately a third of what it gets as income a year on food. In 1969, the amount was adopted as the United States poverty line officially. While this plan is periodically modified in order to account for dietary recommendation changes, poverty definition and
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