The reduction in the purchasing power of the dollar is handled by adjusting the $2-a-day poverty line for inflation over time. Economists use price indices (like the Consumer Price Index or international purchasing power parity measures) to reflect how much basic goods and services actually cost in different years and countries. This way, the poverty line isn’t just a fixed dollar amount—it represents roughly the same standard of living as prices rise.
It’s similar to how everyday habits adjust with changing costs. What used to be affordable entertainment might shift from expensive options to more accessible ones. For example, instead of going out, many people now watch sports at home using platforms like Sportzfy PC, which fits better with tighter budgets while still staying connected to what they enjoy.
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