In your own words, explain the problems with measuring poverty (standard of living, absolute vs relative, HDI)
Standard of living – The most common method for measuring living standards is using GDP per capita. This is national income divided by population and gives a rough guide to average incomes. High real GDP per capita indicates citizens are able to purchase more goods and services. difficulty in using GDP to measure standard of living is that GDP per capita in $ terms does not necessarily reflect the local purchasing power of a country.
HDI – a composite index including real GDP at PPP, education levels and healthcare standards. A problem of using HDI is that data from some developing countries may not be very reliable and may be difficult to confirm.
Relative poverty – the condition in which people lack the minimum amount of income needed in order to maintain the average standard of living in the society in which they live. A problem of relative poverty is that it can be used within one society because everyone in different countries has a different standard of living.
Absolute poverty – the 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. A problem of absolute poverty is same as relative poverty where everyone in different countries has a different standard of living.
What do you think is the best way to measure poverty in Canada and the world.
I think the best way to measure poverty in Canada is relative or absolute poverty because we’re all living in a same country, it would be easier to measure with the same standard of living.
And for the world, I think using HDI is the best because it is based on education levels, and health care standards.