In our textbook written by Robert L. Sexton, Survey of Econ, it speaks about the definition of poverty (Sexton, 2014, pp 217). The book states that the federal government measures poverty by using a set of money thresholds that vary by family size. To be considered poor, the family’s or every individual total income must be less than the established family threshold. These thresholds are adjusted annually for inflation. In the United States, the official poverty rate is set at three times the cost of providing a nutritionally adequate diet (Sexton, 2014, pp. 217-218).
The national poverty level is important to determine because Government aid in the form of welfare programs can assist those at this level. The Department of Health and