Why does the poverty line vary with time and place?
1. A person is considered poor if his or her income or consumption levels falls below a given ‘minimum level’ necessary to fulfill basic needs.
2. What is necessary to satisfy basic needs is different at different times and in different countries.
3. That is why; poverty line may vary with time and place. Each country uses an imaginary line that is considered appropriate for its existing level of development and its accepted minimum social norms.
4. For example, a person not having a car in the USA may be considered poor. But, in India, owning of a car is still considered a luxury.
5. While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirement, etc. are determined for subsistence.
