It's not an entirely relative measure. My understanding is that it: a) Includes income transfers, like SNAP, housing assistance, EITC, etc. b) Is based on th

It's not an entirely relative measure. My understanding is that it: a) Includes income transfers, like SNAP, housing assistance, EITC, etc. b) Is based on the affordability of a bundle of food, clothing, shelter, and utilities consumed at the 33rd percentile. In other words, after including most government anti-poverty transfers, is the person able to afford food, clothing, shelter and utilities equivalent to that consumed by the 33rd income percentile. It is relative, but it's not strictly relative, because it's based on a small basket of necessities.