The_Best_Ways_to_Measure_Poverty

The Best Ways To Measure Poverty Brían Murphy 09446109 1BA6 Michelle Millar There are several recognized ways of measuring poverty. In the following text I will outline the ways which I believe are the best ways to measure poverty. Poverty is a serious issue that needs to be dealt with in society and it can cause many problems. Problems such as Money debt, educational problems and health problems are majors factors that can contribute to the downfall of equality in society. We can see how poverty is a hard problem to solve due to its tendency to operate in a cycle, which is hard to get out of once it starts. If a person is born into a poverty stricken background it makes it a lot harder for that person to become successful, therefore making it easier and more probable that the person in question will remain poor and that his/her children will also be born into a less fortunate and poor background just as the parent was. The cycle of poverty occurs because people’s status and incomes are largely determined by their paid employment. Employment prospects are determined by educational credentials. Educational attainment and achievement/success are closely related to social background. The ESRI has set up a scheme to help make education more accessible to the poor. The “Investing in Education: Combating Educational Disadvantage” scheme was set up in 2009 and has made an effort to make education an equally achievable ambition for both rich and poor. In order for poverty to be measured certain things must be looked at. Firstly one must understand and uncover what the level of relative poverty is in Ireland. This form of poverty is also known as income poverty. One is included in this category of poverty is he/she has an income below 60% of the median income in Ireland. In 2006, that was any income below €202.49. The government defined poverty and social exclusion in 1997 as “People are living in poverty if their income and resources are so inadequate as to preclude them from having a standard of living which is regarded as acceptable by Irish society generally. As a result of inadequate income and resources people may be excluded and marginalised from participating in activities which are considered the norm for other people in society”. This quotation shows a little also how the poverty cycle exists. We must also look at Consistent poverty. Consistent poverty is relative poverty with the person also experiencing enforced deprivation. This means being on a unsubstantial income and also not being able to afford basic necessities such as clothes, heat, meat/fish or going into debt to pay ordinary household bills. In Ireland 8 foundational items that are used to construct the deprivation index, which measures and indicates to us the level of relative deprivation in our country. The 8 items are as follows. Having no substantial meal for at least one day in the past two weeks. Having to go without heating at any time in the past year getting into debt to pay ordinary living expenses not having two pairs of strong shoes not having a coat, waterproof coat being unable to afford to have meat, chicken or fish every second day being unable to afford a roast dinner once a week being unable to afford new clothes (not second-hand) The above ways of measuring poverty are very effective and are well thought out method of measurement. They are typical necessities for every person and are realistic, understandable and one can relate to how these are methods of measurement of poverty. In the USA the measurements are broader, with the poverty level in 2009 being $22,050 for a family of four. Although this is a reasonable figure I think a weekly or daily way of measuring poverty is more suited, as is the approach in Ireland that we’ve just seen. This is my belief because I think that it is easier to see if somebody lives in poverty by using the 8 basic items list. There are also other ways of measuring poverty. These include the Budget Standard Approach, the Food Ratio Method, the Social Security Line and the United Nations Poverty Index. The Budget Standard Approach is a poverty line based on the cost of a specific basket of goods and services that are considered by experts, to represent a basic living standard. The Food Ratio method is where the poor are distinguished from the non poor by the proportion of their money spent on necessities such as food, clothes and shelter. The Social Security Poverty line is when the lowest level of social welfare payment is used as equivalent to a poverty line. The United Nations Poverty Index combines the measures such as life expectancy, literacy, long-term unemployment and relative income. The rates of social welfare also act as indicators to the rate of poverty. Rates of income support as a benchmark to the rates of poverty and social welfare rates. The subjective poverty line also exists and is based on asking people what they would regard as the minimum resources to “make ends meet”. The relative income poverty lines are based on income levels in society and are an ad to the overall picture and measurement of poverty in Ireland. I believe the ways we currently measure poverty in Ireland are very accurate and clear. They are also easily identifiable for members of the public to recognize and understand. This creates a better awareness about poverty an allows people to realize where they stand in terms of poverty. Bibliography: Notes of Michelle Millar, NUIG www.nccp.org/publications www.sociainclusion.ie/poverty www.cso.ie/eusilc/default