I'm going from memory but level 1 was what you describe.
Level 2 is being able to meet your needs but all your time goes into meeting those needs.
Level 3 is having enough extra money to pay for things you don't need.
Level 4 was IIRC basically not having to work.
Most countries have a range of 1-3 or 2-3 or 3-4 or some distribution of that.
Anyway long story short, western countries mostly have 2-4 and don't know what 1 even looks like (on a lived experience level). They've seen pictures of it and there are people living in Level 1 in western countries, they just aren't as front and center. If you've lived near Level 1 you know what real poverty looks like. If you haven't you think that Level 2 is real poverty. Both need to be addressed, but I agree that Level 1 poverty is so much worse for people living there.