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The definitions of poverty are used to measure relative wealth, not whether someone lives paycheck to paycheck.

The definitions of poverty are used to measure relative wealth, not whether someone lives paycheck to paycheck. As income increases, paycheck to paycheck reports decrease, but at a certain point it then increases again. Living paycheck to paycheck is a poor measure, because you can buy a house that’s too expensive for your income, or a car, eat out too much, or make a variety of other poor life choices. That’s why the poverty index is good at measuring relative decreases in poverty because it ignores poor life choices.

Posted by illusive4080 on Apr 6, 2026, 3:38 PM

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The definitions of poverty are used to measure relative wealth, not whether someone lives paycheck to paycheck.

illusive4080Apr 6, 2026, 3:38 PM

The definitions of poverty are used to measure relative wealth, not whether someone lives paycheck to paycheck. As income increases, paycheck to paycheck reports decrease, but at a certain point it then increases again. Living paycheck to paycheck is a poor measure, because you can buy a house that’s too expensive for your income, or a car, eat out too much, or make a variety of other poor life choices. That’s why the poverty index is good at measuring relative decreases in poverty because it ignores poor life choices.

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