<p>That's not specific to poor, any income increases with inflation.</p>

<p>The real problem is that the poor receive goods for free (charity, squatting, rent nonpayment) so their real income can never be measured.</p>

CC BY-SA 4.0
2019-08-27T01:27:57.903Z
2019-08-27T01:27:57.903Z
user24107
<p>Inflation has been a challenging aspect 
of policymaking. In such situations growth in 
the income levels of the population living below 
the poverty level can never be measured 
accurately (due to higher infation poverty section will 
show higher income) . My question is: Due to higher inflation why cannot we measure growth in the income levels of the population living below poverty line accurately? <img src="https://i.sstatic.net/Txg2P.jpg" alt="enter image description here"></p>

CC BY-SA 4.0
2019-08-25T02:36:14.940Z
Could you clarify your question? What is the link between inflation and inability to measure income levels?
Brennan
CC BY-SA 4.0
2019-08-25T06:07:59.350Z
I have edited my question.
Venkat
CC BY-SA 4.0
2019-08-25T06:49:11.910Z
Thanks! Why can’t we measure growth in the income levels accurately—where did you read this? Why couldn’t we just account for inflation it in our calculations of income growth?
Brennan
CC BY-SA 4.0
2019-08-25T07:55:35.547Z
It's in the text of Indian economy book.
Venkat
CC BY-SA 4.0
2019-08-25T18:18:41.957Z
Angus Deaton has been discussing these sort of issues for some time now. Im really not sure how this can be said.
EconJohn
CC BY-SA 4.0
2019-08-25T18:43:11.410Z
Oh i see, the inflation distorts the incomes measured (reports them higher than they actually are). I can’t see why this is problematic as one could factor in this inflation and adjust for it. I wonder if it has to do with the way they calculate inflation. Theres no clear answer to this question—I would look into the official statistics centre for India (i doubt this is what its called, in Canada it is called “Statistics Canada”.) im sure there is an Indian equivalent
Brennan
<macroeconomics><inflation><gdp><economic-growth><national-income>
Can't we measure the growth in the income levels of poor?
Venkat
# Can't we measure the growth in the income levels of poor?

(Asked by: username_0 on 2019-08-25)

Inflation has been a challenging aspect
of policymaking. In such situations growth in
the income levels of the population living below
the poverty level can never be measured
accurately (due to higher infation poverty section will
show higher income) . My question is: Due to higher inflation why cannot we measure growth in the income levels of the population living below poverty line accurately? ![enter image description here](https://i.sstatic.net/Txg2P.jpg)

**Tags:** macroeconomics, inflation, gdp, economic-growth, national-income

> **Comments:**
> **username_1**: Could you clarify your question? What is the link between inflation and inability to measure income levels?  
> **username_0**: I have edited my question.  
> **username_1**: Thanks! Why can’t we measure growth in the income levels accurately—where did you read this? Why couldn’t we just account for inflation it in our calculations of income growth?  
> **username_0**: It's in the text of Indian economy book.  
> **username_2**: Angus Deaton has been discussing these sort of issues for some time now. Im really not sure how this can be said.  
> **username_1**: Oh i see, the inflation distorts the incomes measured (reports them higher than they actually are). I can’t see why this is problematic as one could factor in this inflation and adjust for it. I wonder if it has to do with the way they calculate inflation. Theres no clear answer to this question—I would look into the official statistics centre for India (i doubt this is what its called, in Canada it is called “Statistics Canada”.) im sure there is an Indian equivalent  

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## 1 answers

### Answer by username_3 on 2019-08-27. Score: -1

That's not specific to poor, any income increases with inflation.

The real problem is that the poor receive goods for free (charity, squatting, rent nonpayment) so their real income can never be measured.


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