The hierarchical nature of needs is reflected in evolving historical conceptions of "needs," "luxuries," and "poverty." In precapitalistic, preindustrial societies, human beings survived in what Americans would today regard as abject poverty. Even the upper classes of past ages would be considered impoverished by present standards, suffering from disease, discomfort, and early death. When Thomas Hobbes stated that "life is nasty, brutish, and short," he was not just posturing philosophically, but was pointing out a stark truth of seventeenth-century life, a reality that is almost inconceivable to modern observers. The enormous historical improvement in living standards is reflected in a remarkable increase in average life-span figures, especially over the last 200 years. Because of such evolution, the distinction between "needs" and "luxuries" is not absolute, but must be adjusted according to historical context. For instance, electricity and modern medical care, today widely held to be "essential needs," were formerly unimaginable luxuries, which could not be obtained even by the most wealthy and powerful.

Even within a given historical era, the "needs"/"luxuries" distinction is strongly dependent on social context. In Cuba (one of the few remaining socialist countries), around-the-clock electrical power is now considered an unaffordable luxury. In the United States, in contrast, the catalog of "basic needs," as construed by regulators, now includes not only electricity but even cable television.