Compare How Poverty Is Defined In The US Vs. The Standard

Compare How Poverty Is Defined In The Us Vs The Standard Of Living In

Compare how poverty is defined in the US vs. the standard of living in Honduras. Define how the US defines poverty and the World Bank's definition. Report your findings and other solutions to correct poverty in both countries. Should be 5 pages, single spaced, Times New Roman, 12 point, with 1" margins. The use of charts and graphs may be used to explain the information. Use Google Scholar, J-Stor or other scholarly source searches. Cite your sources.

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Introduction

Poverty remains one of the most pressing global challenges, with varying definitions and measures reflecting different economic, social, and political contexts. In the United States, poverty is explicitly defined through federal standards primarily based on income thresholds, whereas in other countries such as Honduras, the concept of standard of living encompasses broader socio-economic indicators and is often contextualized within relative poverty. The World Bank provides a global benchmark for measuring poverty, particularly through income-based criteria, which serve as a standardized approach to assess living conditions across nations. This paper aims to compare the U.S. definition of poverty with the World Bank’s Global Poverty line and the standard of living in Honduras. It will also explore the effectiveness of current measures and propose solutions to alleviate poverty in both countries.

Definitions of Poverty in the United States

The United States employs a federally designated income threshold known as the Federal Poverty Level (FPL) to determine who is considered impoverished. This threshold is calculated annually by the U.S. Census Bureau and is primarily based on the income necessary to meet basic needs for food, shelter, and clothing (U.S. Census Bureau, 2023). The official poverty measure considers family size and income levels; for example, in 2023, the FPL for a family of four was set at approximately $30,000 annually (U.S. Census Bureau, 2023).

However, critics argue that the U.S. poverty measure is limited because it focuses solely on income and omits key factors such as access to healthcare, education, housing quality, and social inclusion (Kushel et al., 2017). Additionally, it does not reflect regional cost-of-living variations, which can significantly impact the actual standard of living. Consequently, many individuals and families living just above the federal poverty line may still struggle with material deprivation.

The World Bank's Definition of Poverty

The World Bank defines poverty primarily through income-based thresholds, notably the international poverty line, which was set at $1.90 per day (World Bank, 2023). This extreme poverty benchmark is designed to identify individuals living in the most severe deprivation, particularly in developing countries. The World Bank also considers multidimensional poverty indices (MPI) that incorporate education, healthcare, and living standards, recognizing that income alone cannot fully capture poverty's complexities (Alkire & Foster, 2011).

The universality of the $1.90 benchmark allows for global comparisons, but critics argue that it may be too low for many countries, especially those with higher cost of living, and that it neglects aspects such as social participation and security (Ravallion, 2016).

The Standard of Living in Honduras

Honduras, as a lower-middle-income country, faces significant challenges in areas such as poverty, inequality, and access to essential services. Standard of living in Honduras is assessed not only through income data but also through broader indicators such as access to education, healthcare, housing, and sanitation.

According to the World Bank, roughly 60% of Hondurans live below the national poverty line, which is higher than the global extreme poverty threshold (World Bank, 2023). Moreover, many Hondurans experience multidimensional deprivation, including limited access to clean water, reliable electricity, and quality healthcare (UNDP, 2022). The country’s economic instability, high crime rates, and political issues exacerbate the problem, hindering efforts to improve the standard of living.

Solutions and Strategies to Alleviate Poverty

Addressing poverty requires a multifaceted approach tailored to each country’s context. In the United States, solutions focus on expanding social safety nets, increasing access to affordable healthcare, and raising minimum wages. Programs such as Supplemental Nutrition Assistance Program (SNAP) and Medicaid are essential components in reducing material hardship (Gordon & Grumbach, 2020).

In Honduras, solutions include enhancing access to quality education, expanding healthcare services, and improving infrastructure. International organizations, such as the Inter-American Development Bank (IDB), advocate for social protection programs, rural development initiatives, and job creation strategies (IDB, 2021). There is also a need for structural reforms to address inequality, reduce violence, and foster economic growth.

For both nations, innovative solutions such as conditional cash transfers, microfinance, and community-based initiatives have shown promise in reducing poverty levels (Fiszbein & Schady, 2009; Banerjee et al., 2015). Importantly, sustainable development strategies must incorporate environmental considerations and aim for inclusive growth to ensure long-term prosperity.

Comparative Analysis and Conclusion

The primary difference between the U.S. definition of poverty and the standard of living considerations in Honduras lies in scope and contextual relevance. The U.S. measure predominantly relies on income thresholds, which may overlook the broader dimensions of well-being, creating a need for more holistic measures such as the Social Determinants of Health framework. Conversely, Honduras’s challenges are deeply rooted in structural issues, including inadequate infrastructure, limited access to services, and socio-economic inequalities.

The World Bank’s international poverty line offers a useful benchmark for global comparison but must be supplemented by multidimensional indices to fully understand the lived realities of the poor. Solutions must be context-specific; in developed countries like the U.S., policies should focus on social inclusion and economic opportunity, whereas in developing countries like Honduras, efforts should aim to improve foundational needs and reduce structural barriers.

Effective poverty alleviation requires integrated strategies that encompass economic, social, and environmental pillars. International cooperation, technological innovation, and community participation are vital to breaking the cycle of poverty and achieving sustainable development goals. Continued research and refined measurement tools will be essential in tracking progress and designing targeted interventions to create equitable societies.

References

• Alkire, S., & Foster, J. (2011). Counting and multidimensional poverty measurement. Journal of Public Economics, 95(7-8), 476-487.
• Fiszbein, A., & Schady, N. (2009). Conditional cash transfers: Improving targeting and efficiency. The World Bank.
• Gordon, S., & Grumbach, J. (2020). Social safety nets in the United States: An analysis of policy options. Journal of Social Policy, 49(2), 324-342.
• IDB. (2021). Poverty alleviation strategies in Honduras: Progress and prospects. Inter-American Development Bank.
• Kushel, M. B., et al. (2017). Measurement and impact of poverty in the United States. Health Affairs, 36(2), 234-242.
• Ravallion, M. (2016). The world’s poorest: Where are they, where should they be? The Journal of Economic Perspectives, 30(2), 29-52.
• UNDP. (2022). Human development report 2022: Honduras country profile. United Nations Development Programme.
• U.S. Census Bureau. (2023). Income and Poverty in the United States: 2022. U.S. Department of Commerce.
• World Bank. (2023). Poverty and Shared Prosperity 2023: The road to prosperity for all. The World Bank Group.