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We measure poverty by what I believe is a very, very crude…

“We measure poverty by what I believe is a very, very crude concept. We actually measure poverty by trying to get some kind of an estimate of the minimum expenditures on food that are required to maintain health, multiplying that number by three, and saying that's the level of poverty. And it's a…” quote by Milton Friedman
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“We measure poverty by what I believe is a very, very crude concept. We actually measure poverty by trying to get some kind of an estimate of the minimum expenditures on food that are required to maintain health, multiplying that number by three, and saying that's the level of poverty. And it's a very crude, inaccurate arrangement.”

Milton Friedman

About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Poverty metrics rely on a simplistic food‑cost multiplier, which is imprecise and overlooks broader needs.

In simple terms: Poverty is measured by a crude food‑cost formula.

Key Takeaway

Recognize limits of current poverty measures.

Themes

poverty measurement economics policy inequality

Mood

critical analytical

Type

analytical policy

When to use this quote

  • welfare program design
  • academic research
  • government budgeting
  • NGO advocacy

Key Concepts

cost of living minimum subsistence statistical modeling

Questions to Reflect On

  • How could we incorporate health, housing, and education into poverty thresholds?
  • What alternative indicators better capture material deprivation?
A Different Perspective

The method ignores non‑food essentials and regional cost differences.

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