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First:
Read through textbook p.184 – p.185

Person A summarizes:

1) What is absolute poverty?

2) The effect of poverty on living standards with respect to material impacts.

Person B summarizes:

1) What is relative poverty?

2) The effect of poverty on living standards with respect to non-material impacts.

Sunny(A) and Chris (B)

"Remember to vote your favorite one! "

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Absolute Poverty

Absolute poverty refers to people living in a situation where they do not have enough income to purchase the basic goods and services necessary for survival (e.g. food, shelter, clothing).

Material living factors relate to a household’s access to goods and services and depend on the amount of income earned by a household. Poverty is typically associated with poor outcomes for health and education of those family members living in poverty. They are less likely to have the financial means to support a healthy diet, visit medical professionals and pay for medicines, which means that they are more likely to fall into a state of poor physical and mental health.

Relative Poverty

Relative poverty occurs when a household has a low level of income compared to a generally agreed standard. In relation to ‘relative poverty’ within Australia, the standard refence point is called the ‘Henderson poverty line’.

The effect on living standards with respect to non-material impacts include:

The helplessness, despair or mental illness that may be experienced by those living in absolute or relative poverty.

An increase in social unrest or anti-social behaviour (crime).

The development of social mobility and inequality or opportunity, with some groups unable to break a cycle of poverty.

The development of a ‘class system’ in society, and a growing sense of ‘us’ and ‘them’.

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Absolute poverty refers to the situation when people have insufficient income to purchase the basic goods and services such as food, shelter and clothing which are necessary for survival, thus not being able to satisfy the basic living needs

Poverty generally results in poor outcomes for health and education of those family members living in poverty. They are less likely to have the financial means to support a healthy diet, visit medical professionals, or pay for needed medicines. These people are more likely to perform poorly in school, thus resulting in a lack of skills, which forces them into unemployment in the future. This then leads to low monetary income, meaning higher possibilities of falling into absolute poverty. Their lack of specialised skills will mean that their efficiency in a workplace is low, resulting in slow economic growth.

Relative poverty

Relative poverty describes a household which has a low income level when it is compared to a generally agreed standard of income

Effect of poverty

Poverty can affect both material and non-material living standards, including poor outcomes for health and education, as poverty reduces one’s ability to afford a health diet, visit doctors, and pay for medicine. Furthermore, non-material living standards are also affected, as those living in poverty experience despair, mental illnesses, social unrest increases, and inequality increases, as some cannot get themselves out of poverty, contributing rot intergenerational poverty as future generations find it difficult to break free of the constraints that bound their family. Furthermore, a class system will also develop, separating those in poverty with the rest of society.

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Absolute Poverty:
Refers to people living in a situation where they have insufficient income to purchase the basic goods and services such as food shelter and clothing.
Impacts of poverty on living standards with respect to material Impacts:
poverty is typically associated with poor outcomes for people living in poverty. they are less likely to have their financial means to support a healthy diet, visit a medical professional or pay for needed medicines. children living in poverty are less likely to be engaged at school, resulting in lower skill levels and an increased likelihood of unemployment.
Relative Poverty:
A situation where a person or a household has a low level of income compared to other individuals or households in a society, or compared to a generally agreed standard.
Impacts of poverty on living standards with respect to non-material Impacts:
- The helplessness, despair or mental illness may be experience by those living in poverty.
- Increase in social unrest or anti-social behaviour (such as crime)
- The develpopment of a class system in society, and a growing sense of us and them
- The loss of social mobility and inequality of opportunity, with some groups unable to break a cycle of poverty. This contributes to inter-generational poverty as future generations of poverty stricken families find it difficult to break free of the constraints that bound their families.

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What is absolute poverty?
Absolute Poverty is an person/people who are living in a place or situation where they lack the sufficient funds needed to purchase basic goods and services, such as clothing, food and shelter.

What are the effects of poverty on material living standards?
The effect of poverty on material living standards is extremely negative. Due to the insufficient funds and income, they are unable to purchase even the most basic of goods. This means that they have extremely low purchasing power and thus in turn have extremely low material standards of living. This association can be seen as an inverse one, as poverty increases a persons material living standards decrease.

What is relative poverty?
This is to do with households living with a lower level of income relative to the standard within that country, meaning that household is living with lower living standards in comparison to most households. In this case, Australia's 'benchmark' is known as the 'Hendersonn poverty line'. If the household is living below this reference point, then they are not earning enough money to provide a 'dignified stand of living.'

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Person (B)Relative neediness happens when a family has a low level of salary contrasted with a by and large comparable standard.

People with mental illness living in poverty may be less able to access resources needed.

Lead to an increase in crime as people living in poverty are desperate.

The loss of social mobility and lack of economic equality means some people will not be able to break the cycle of poverty.

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Abhinav (A):
- Absolute poverty
Refers to a condition where a person does not have the minimum amount of income needed to meet the minimum requirements for one or more basic living needs over an extended period of time. This includes things like: food, water, shelter, education and drinking water.
- Poverty on Material Living Standards:
Poverty can have a very negative effect of material living standards. Since poverty itself is defined by not having sufficient income, material living standards will be lower as people in poverty will have lower spending power and a lower ability to buy things that they may want.

Fahim (B):
- Relative Poverty
The condition where household income is below a pre-determined amount that is considered to be insufficient for living a comfortable life. For example, the threshold for relative poverty could be set at 50% of median incomes (or 60%).
Poverty on Non-material Living Standards:
People in poverty are unable to afford proper housing and may resort to living in substandard conditions. They cannot access basic needs such as clean water and basic sanitation.