Poverty is the lack of basic human need such as clean water, nutrition, Health Care, Education, clothing and shelter because of the inability to afford them. this is referred to as absolute poverty destitution.
Relative Poverty is a poverty measure based on a poor standard of living or a low income relative to the rest of society. unlike absolute poverty, it does not necessarily imply that physically human necessities of Nutrition, health and shelter cannot be met; instead it suggest that the lack of access to many of the good and service expected by the rest of the contemporary society lead to social exclusion and damaging result for the individuals and families in relative poverty.
Absolute Poverty measure the number of people living below a certain income threshold or number of household unable to afford certain basic goods and services.
The Poverty Trap
The poverty trap affect people on low income. it create disincentive to look for work or work longer are because of the effect of tax and benefit system. For example, a worker might be given the opportunity to earn an extra of rupees 50 a week by working 10 additional hours. This boost to his her gross income is reduced by increasing the income tax and the National Insurance contributions. The individual may also loves some income related State benefits. The combined effect of the might be taken over 70% of a rise in income, leaving little in the way of extranet or disposable income.
