Two Worlds of Poverty: A Look at the U.S. and Bangladesh
When we talk about poverty, it’s easy to think of it as a single global problem. Yet the data tells us that poverty takes very different forms depending on where people live. A look at recent graphs comparing poverty in the United States and Bangladesh highlights these striking contrasts.
Measuring Poverty: Relative vs. Absolute
In the United States, poverty is usually measured against a federally defined threshold—about $15,000 for an individual or $31,000 for a family of four. People who fall below this line are considered “poor,” even though they may still have access to services such as public schools, food assistance, and basic healthcare.
In Bangladesh, however, poverty is often measured in absolute terms: the percentage of people living on less than $2.15 a day (the World Bank’s extreme poverty line). This measure highlights whether families can meet the most basic needs—food, shelter, and survival.
U.S. Poverty: A Persistent but Lower Rate
The graphs show that poverty in the United States has hovered around 11–13% in recent years. While this is concerning in a wealthy country, most U.S. families living in poverty still have access to infrastructure like electricity, clean water, and basic healthcare—things often taken for granted.
Bangladesh Poverty: A Steep but Improving Challenge
By contrast, Bangladesh has made remarkable progress over the past three decades. In the 1990s, more than 40% of the population lived in extreme poverty. Today, that number has dropped below 10%, thanks to economic growth, agricultural innovation, and large-scale poverty reduction programs. Still, millions remain vulnerable to shocks such as flooding, rising food prices, and climate change.
A Tale of Two Realities
The side-by-side graphs make one truth clear: poverty is not a single story. In the U.S., poverty is relative—it means struggling in the midst of plenty. In Bangladesh, poverty often means the difference between survival and despair.
Why These Comparisons Matter
By studying these different poverty contexts, we learn two key lessons:
Progress is possible. Bangladesh’s rapid poverty reduction shows how sustained efforts can transform lives.
No country is immune. Even the wealthiest nations face inequality and hardship that demand attention.
Poverty may look different in the U.S. and Bangladesh, but both remind us of the same truth: addressing human need requires not only resources, but also commitment, compassion, and smart policy. It also shows us how much we in the US have to offer developing countries like Bangladesh. We thank all of PSDI’s donors for investing in the eradication of poverty in our world today.
