What is considered the poverty threshold?

The poverty threshold refers to the annual income level established by the government, below which a family is classified as living in poverty. It is a crucial measure used to assess the economic well-being of families and individuals in a country. This threshold is determined based on various factors, including family size and the cost of living in specific areas, aiming to identify those who may be unable to secure basic necessities such as food, shelter, and healthcare.

The distinction of the poverty threshold lies in its function as a benchmark for social programs, government assistance, and economic policy-making. It is a vital tool for evaluating poverty levels and determining eligibility for social services. Those earning below this threshold are considered at risk of being unable to meet their basic needs, which highlights the importance of this measure in socioeconomic studies and policy frameworks.