A major critique of how the poverty line is calculated in the United States is that the calculation does not include costs associated with housing, transport, childcare, healthcare, and geographical differences.
The poverty line reflects the minimum income needed to meet basic needs of a family. Each country has its own method and threshold for calculating poverty.
In the United States, the poverty rate is calculated by the US Census Bureau. Using a threshold that was defined in the 1960s, the federal poverty line in 2018 was kept at $25,465 for a family of four (parents and two children). As per this threshold, about 38 million or 11.8 percent of the US population are poor.
This official number is considered too low. The poverty line is criticized for not reflecting various costs like housing, transportation, child care, healthcare, etc. It also neglects geographical differences in costs of living.
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