Mollie Orshansky's Definition Of Poverty

Mollie Orshansky’s definition of poverty is the official definition used in the United States, defined as the “condition of people who cannot afford the necessities of life” (Principles of Microeconomics, 306). We measure poverty by the estimated minimum level of income needed to secure the necessities of life. On the other hand, income inequality is when “one group receives a disproportionate share of total income or wealth than others” (Principles of Microeconomics, 306). Supply and demand in the labor markets is what influences wages, which leads to very high income for some and very low incomes for others. Those with low income enter a poverty trap where antipoverty programs are “set up so that government benefits decline substantially