The poverty rate is the percentage of the population that lives below the established poverty line, which is defined as the minimum level of income deemed adequate to maintain a basic standard of living. This statistic helps illustrate the economic disparities within a society and serves as a critical indicator for policymakers to assess the effectiveness of social programs and economic policies aimed at reducing poverty. Understanding the poverty rate also sheds light on historical trends, measurement challenges, and how different welfare state models influence poverty levels across countries.
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