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Poverty in Canada: Relative Poverty Measurement Essay

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Poverty is an ongoing problem in Canada. Poverty is defined as the inability to obtain the necessities for life . Despite poverty being an ongoing problem, how to properly measure it is disputed among scholars. There are two basic formations for the measurement of poverty: the relative measurement and the absolute measurement. In Canada they are called the low income cut off, or LICO, measurement and the market basement measure, or MBM, measurement. The LICO measurement is individuated to Canada whereas the MBM measurement is a worldwide standard. Of the two the LICO measurement of poverty is most relevant for Canadian politicians. This because a relative measurement allows for policy makers to understand poverty based upon what it means …show more content…

The LICO defines some as improvised if they spend 62% or more of their yearly income on necessary goods .
Absolute poverty measurements are based upon a worldwide standard. They measure if a person is too able to earn enough money to satisfy the basic needs of individuals . This formation therefore looks at deprivation since it looks to see if you have enough to survive. Additionally this standard is a worldwide standard of what it expected to be needed by individuals to survive. Thus the absolute poverty measuring is a more fixed and world standard of measuring poverty. The Canadian version of this measurement is the MBM. It defines poverty as anyone who has a yearly income below the market basement, the amount that is defined as the minimum needed to have the access to the most basic necessities of life . The basement though will change as newer technological advances are deemed necessary for basic living . In 1988 this poverty line the market basement was $20,230 for a four person family. This is “roughly half of the LICO… poverty line incomes”
The big difference between the two measures is the understanding of necessity. The MBM looks to see what life is like living at the bare minimum requirements. It looks to see if what would happen if you bought only that was required and nothing else. This is different from the LICO measurement which looks to see if Canadians have enough income after necessities are purchased to live like a Canadian. It

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