Demand‑Driven Prices and Poverty

When commentators treat high prices as evidence of rising need, they may confuse demand‑side affordability (more people buying goods) with supply scarcity that would justify an elevated poverty threshold. Policy should separate price level changes driven by expanded purchasing power from genuine declines in material living standards before resetting poverty lines. — Distinguishing demand‑driven price increases from supply shortages reframes debates over poverty measurement, benefit targeting, and inflation policy, influencing eligibility for aid and public perception of economic distress.