Poverty line, or poverty threshold, is used to mark the minimum income needed to achieve a satisfactory standard of living. While this may mean different thing in different parts of the world, in the US being above the poverty line means having access to water, food, shelter, education, medical care, and adequate clothing. The poverty line varies widely depending on state, number of persons living in the household, number of children in the household, and factors like disability and access to medical care.

In the US, the poverty line rises or falls every year according to the Consumer Price Index and other factors. In 2006, a single person needed to earn a minimum of $9,800 ($12,250 if she lives in Alaska) a year to stay over the poverty line. A family of four needed a combined income of at least $20,000. According to these guidelines, more than 37 million people in the US are currently living below the poverty line.

Individuals who fall below the poverty line often lack basic things like microwaves, clothes dryers, and computers. However, 91 percent of the families under the poverty line own a color TV, and 52 percent own a stereo. When it comes to food security, close to 90 percent of Americans below the poverty line have regular access to it, either through food stamps or food assistance programs like soup kitchens. A much higher percentage of people under the poverty line lack access to medical care. While a few may be admitted into Medicaid or other government programs, most do not. This is especially true of adults, as children and the elder have an easier time obtaining free medical care.

On an interesting note, 46 percent of individuals who fall under the poverty line own their own homes. This is a percentage similar to the one obtained from people who own an acceptable income and do not receive government assistance. Of that 46 percent, some own a mobile home, and some own a three-bedroom home, although the general condition of the housing can vary widely. Many people who live under the poverty line are in urgent need for basic household repairs, such as a roof replacement or a pipeline fitting, and still do without them.

Critics of the current system used to determine the poverty line argue that the percentage of people living in poverty is much higher than what it seems. This is because the poverty line does not take into consideration certain factors such as rent or the median price of a home. The poverty line in the United States is the same, no matter what the cost of living in the area is. If it did, the percentage of Americans living under the poverty line would raise to 30 percent.