refers to the disparity between those with higher and lower incomes. The poverty rate is what percentage of the

population lives below the poverty line, which the amount of income that it takes to purchase the necessities of

life determines. Choosing a poverty line will always be somewhat controversial.

15.2 The Poverty Trap

A poverty trap occurs when government-support payments decline as the recipients earn more income. As a

result, the recipients do not end up with much more income when they work, because the loss of government

support largely or completely offsets any income that one earns by working. Phasing out government benefits

more slowly, as well as imposing requirements for work as a condition of receiving benefits and a time limit on

benefits can reduce the harshness of the poverty trap.

15.3 The Safety Net

We call the group of government programs that address poverty the safety net. In the United States, prominent
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