1) The state of someone thinking they are poor when they really aren't.
2) The state of someone who gets food stamps or other government assistance but then use their money on frivilous items like video games, vacations, big screen tv's, etc. instead of trying to get back on their feet.
They aren't really poor. They are on food stamps and Medicaid but they use their tax refund to go to Disneyland every year. They're just living in psuedopoverty.