Final answer:
The U.S. Census Bureau defines poverty using poverty thresholds that vary by family size and composition, with the reference point being the federal poverty line which is based on food expenditures updated for inflation. In 2023, a family of four earning less than $30,000 would be considered in poverty. The concept of poverty includes both absolute and relative poverty, indicating a lack of basic necessities or inability to meet the average standard of living, respectively.
Step-by-step explanation:
The U.S. Census Bureau defines poverty by setting thresholds that vary by family size and composition to determine who is classified as impoverished. In the United States, poverty is a relative measurement which is considered when a family's income is below a certain level known as the federal poverty line (FPL). For example, in 2023, a family of four earning less than $30,000 a year would be classified as living in poverty. This poverty threshold is based on food spending updated for inflation and multiplied by three, a formula dating back to 1955 when food constituted one-third of a family's income.
There is a distinction between absolute poverty and relative poverty. Absolute poverty means that individuals or families cannot afford basic necessities such as food and shelter, putting their daily survival at risk. On the other hand, relative poverty is a condition where individuals may afford necessities but cannot attain the average standard of living. The Census Bureau also conducts ongoing research to refine poverty measurement methods.