A New Understanding of Poverty

Challenging conventional views on poverty measurement, this study critiques the reliance on relative income benchmarks that can paradoxically show poverty declining during recessions. It argues that current policies, primarily income transfers, often hinder long-term opportunities for the poor. The author advocates for a new measurement approach that emphasizes economic growth, increased labor market participation, and supply-side reforms to lower living costs. This evidence-based perspective aims to reshape public policy to genuinely improve the lives of those in poverty, making it essential for the poverty debate.