How does the concept of relative poverty influence policy decisions aimed at alleviating poverty in America?

Relative poverty looks at how people's income compares to others in their community or society. This means that someone might be considered poor if they have much less money than the average person, even if they can afford basic needs. Policymakers use this idea to understand that just having enough money for food and shelter might not be enough for people to feel secure and participate fully in society. For example, if a family earns enough to eat but not enough to pay for school supplies or extracurricular activities, they may still struggle. Therefore, when creating policies, leaders often consider not just basic needs but also how to help people improve their overall quality of life and reduce inequality.