essay on social issues poverty

Why Poverty Persists in America

A Pulitzer Prize-winning sociologist offers a new explanation for an intractable problem.

A mother and son living in a Walmart parking lot in North Dakota in 2012. Credit... Eugene Richards

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By Matthew Desmond

• Published March 9, 2023 Updated April 3, 2023

In the past 50 years, scientists have mapped the entire human genome and eradicated smallpox. Here in the United States, infant-mortality rates and deaths from heart disease have fallen by roughly 70 percent, and the average American has gained almost a decade of life. Climate change was recognized as an existential threat. The internet was invented.

On the problem of poverty, though, there has been no real improvement — just a long stasis. As estimated by the federal government’s poverty line, 12.6 percent of the U.S. population was poor in 1970; two decades later, it was 13.5 percent; in 2010, it was 15.1 percent; and in 2019, it was 10.5 percent. To graph the share of Americans living in poverty over the past half-century amounts to drawing a line that resembles gently rolling hills. The line curves slightly up, then slightly down, then back up again over the years, staying steady through Democratic and Republican administrations, rising in recessions and falling in boom years.

What accounts for this lack of progress? It cannot be chalked up to how the poor are counted: Different measures spit out the same embarrassing result. When the government began reporting the Supplemental Poverty Measure in 2011, designed to overcome many of the flaws of the Official Poverty Measure, including not accounting for regional differences in costs of living and government benefits, the United States officially gained three million more poor people. Possible reductions in poverty from counting aid like food stamps and tax benefits were more than offset by recognizing how low-income people were burdened by rising housing and health care costs.

The American poor have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most.

Any fair assessment of poverty must confront the breathtaking march of material progress. But the fact that standards of living have risen across the board doesn’t mean that poverty itself has fallen. Forty years ago, only the rich could afford cellphones. But cellphones have become more affordable over the past few decades, and now most Americans have one, including many poor people. This has led observers like Ron Haskins and Isabel Sawhill, senior fellows at the Brookings Institution, to assert that “access to certain consumer goods,” like TVs, microwave ovens and cellphones, shows that “the poor are not quite so poor after all.”

No, it doesn’t. You can’t eat a cellphone. A cellphone doesn’t grant you stable housing, affordable medical and dental care or adequate child care. In fact, as things like cellphones have become cheaper, the cost of the most necessary of life’s necessities, like health care and rent, has increased. From 2000 to 2022 in the average American city, the cost of fuel and utilities increased by 115 percent. The American poor, living as they do in the center of global capitalism, have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most. As Michael Harrington put it 60 years ago: “It is much easier in the United States to be decently dressed than it is to be decently housed, fed or doctored.”

Why, then, when it comes to poverty reduction, have we had 50 years of nothing? When I first started looking into this depressing state of affairs, I assumed America’s efforts to reduce poverty had stalled because we stopped trying to solve the problem. I bought into the idea, popular among progressives, that the election of President Ronald Reagan (as well as that of Prime Minister Margaret Thatcher in the United Kingdom) marked the ascendancy of market fundamentalism, or “neoliberalism,” a time when governments cut aid to the poor, lowered taxes and slashed regulations. If American poverty persisted, I thought, it was because we had reduced our spending on the poor. But I was wrong.

Reagan expanded corporate power, deeply cut taxes on the rich and rolled back spending on some antipoverty initiatives, especially in housing. But he was unable to make large-scale, long-term cuts to many of the programs that make up the American welfare state. Throughout Reagan’s eight years as president, antipoverty spending grew, and it continued to grow after he left office. Spending on the nation’s 13 largest means-tested programs — aid reserved for Americans who fall below a certain income level — went from $1,015 a person the year Reagan was elected president to $3,419 a person one year into Donald Trump’s administration, a 237 percent increase.

Most of this increase was due to health care spending, and Medicaid in particular. But even if we exclude Medicaid from the calculation, we find that federal investments in means-tested programs increased by 130 percent from 1980 to 2018, from $630 to $1,448 per person.

“Neoliberalism” is now part of the left’s lexicon, but I looked in vain to find it in the plain print of federal budgets, at least as far as aid to the poor was concerned. There is no evidence that the United States has become stingier over time. The opposite is true.

This makes the country’s stalled progress on poverty even more baffling. Decade after decade, the poverty rate has remained flat even as federal relief has surged.

If we have more than doubled government spending on poverty and achieved so little, one reason is that the American welfare state is a leaky bucket. Take welfare, for example: When it was administered through the Aid to Families With Dependent Children program, almost all of its funds were used to provide single-parent families with cash assistance. But when President Bill Clinton reformed welfare in 1996, replacing the old model with Temporary Assistance for Needy Families (TANF), he transformed the program into a block grant that gives states considerable leeway in deciding how to distribute the money. As a result, states have come up with rather creative ways to spend TANF dollars. Arizona has used welfare money to pay for abstinence-only sex education. Pennsylvania diverted TANF funds to anti-abortion crisis-pregnancy centers. Maine used the money to support a Christian summer camp. Nationwide, for every dollar budgeted for TANF in 2020, poor families directly received just 22 cents.

We’ve approached the poverty question by pointing to poor people themselves, when we should have been focusing on exploitation.

A fair amount of government aid earmarked for the poor never reaches them. But this does not fully solve the puzzle of why poverty has been so stubbornly persistent, because many of the country’s largest social-welfare programs distribute funds directly to people. Roughly 85 percent of the Supplemental Nutrition Assistance Program budget is dedicated to funding food stamps themselves, and almost 93 percent of Medicaid dollars flow directly to beneficiaries.

There are, it would seem, deeper structural forces at play, ones that have to do with the way the American poor are routinely taken advantage of. The primary reason for our stalled progress on poverty reduction has to do with the fact that we have not confronted the unrelenting exploitation of the poor in the labor, housing and financial markets.

As a theory of poverty, “exploitation” elicits a muddled response, causing us to think of course and but, no in the same instant. The word carries a moral charge, but social scientists have a fairly coolheaded way to measure exploitation: When we are underpaid relative to the value of what we produce, we experience labor exploitation; when we are overcharged relative to the value of something we purchase, we experience consumer exploitation. For example, if a family paid $1,000 a month to rent an apartment with a market value of $20,000, that family would experience a higher level of renter exploitation than a family who paid the same amount for an apartment with a market valuation of $100,000. When we don’t own property or can’t access credit, we become dependent on people who do and can, which in turn invites exploitation, because a bad deal for you is a good deal for me.

Our vulnerability to exploitation grows as our liberty shrinks. Because labor laws often fail to protect undocumented workers in practice, more than a third are paid below minimum wage, and nearly 85 percent are not paid overtime. Many of us who are U.S. citizens, or who crossed borders through official checkpoints, would not work for these wages. We don’t have to. If they migrate here as adults, those undocumented workers choose the terms of their arrangement. But just because desperate people accept and even seek out exploitative conditions doesn’t make those conditions any less exploitative. Sometimes exploitation is simply the best bad option.

Consider how many employers now get one over on American workers. The United States offers some of the lowest wages in the industrialized world. A larger share of workers in the United States make “low pay” — earning less than two-thirds of median wages — than in any other country belonging to the Organization for Economic Cooperation and Development. According to the group, nearly 23 percent of American workers labor in low-paying jobs, compared with roughly 17 percent in Britain, 11 percent in Japan and 5 percent in Italy. Poverty wages have swollen the ranks of the American working poor, most of whom are 35 or older.

One popular theory for the loss of good jobs is deindustrialization, which caused the shuttering of factories and the hollowing out of communities that had sprung up around them. Such a passive word, “deindustrialization” — leaving the impression that it just happened somehow, as if the country got deindustrialization the way a forest gets infested by bark beetles. But economic forces framed as inexorable, like deindustrialization and the acceleration of global trade, are often helped along by policy decisions like the 1994 North American Free Trade Agreement, which made it easier for companies to move their factories to Mexico and contributed to the loss of hundreds of thousands of American jobs. The world has changed, but it has changed for other economies as well. Yet Belgium and Canada and many other countries haven’t experienced the kind of wage stagnation and surge in income inequality that the United States has.

Those countries managed to keep their unions. We didn’t. Throughout the 1950s and 1960s, nearly a third of all U.S. workers carried union cards. These were the days of the United Automobile Workers, led by Walter Reuther, once savagely beaten by Ford’s brass-knuckle boys, and of the mighty American Federation of Labor and Congress of Industrial Organizations that together represented around 15 million workers, more than the population of California at the time.

In their heyday, unions put up a fight. In 1970 alone, 2.4 million union members participated in work stoppages, wildcat strikes and tense standoffs with company heads. The labor movement fought for better pay and safer working conditions and supported antipoverty policies. Their efforts paid off for both unionized and nonunionized workers, as companies like Eastman Kodak were compelled to provide generous compensation and benefits to their workers to prevent them from organizing. By one estimate, the wages of nonunionized men without a college degree would be 8 percent higher today if union strength remained what it was in the late 1970s, a time when worker pay climbed, chief-executive compensation was reined in and the country experienced the most economically equitable period in modern history.

It is important to note that Old Labor was often a white man’s refuge. In the 1930s, many unions outwardly discriminated against Black workers or segregated them into Jim Crow local chapters. In the 1960s, unions like the Brotherhood of Railway and Steamship Clerks and the United Brotherhood of Carpenters and Joiners of America enforced segregation within their ranks. Unions harmed themselves through their self-defeating racism and were further weakened by a changing economy. But organized labor was also attacked by political adversaries. As unions flagged, business interests sensed an opportunity. Corporate lobbyists made deep inroads in both political parties, beginning a public-relations campaign that pressured policymakers to roll back worker protections.

A national litmus test arrived in 1981, when 13,000 unionized air traffic controllers left their posts after contract negotiations with the Federal Aviation Administration broke down. When the workers refused to return, Reagan fired all of them. The public’s response was muted, and corporate America learned that it could crush unions with minimal blowback. And so it went, in one industry after another.

Today almost all private-sector employees (94 percent) are without a union, though roughly half of nonunion workers say they would organize if given the chance. They rarely are. Employers have at their disposal an arsenal of tactics designed to prevent collective bargaining, from hiring union-busting firms to telling employees that they could lose their jobs if they vote yes. Those strategies are legal, but companies also make illegal moves to block unions, like disciplining workers for trying to organize or threatening to close facilities. In 2016 and 2017, the National Labor Relations Board charged 42 percent of employers with violating federal law during union campaigns. In nearly a third of cases, this involved illegally firing workers for organizing.

Corporate lobbyists told us that organized labor was a drag on the economy — that once the companies had cleared out all these fusty, lumbering unions, the economy would rev up, raising everyone’s fortunes. But that didn’t come to pass. The negative effects of unions have been wildly overstated, and there is now evidence that unions play a role in increasing company productivity, for example by reducing turnover. The U.S. Bureau of Labor Statistics measures productivity as how efficiently companies turn inputs (like materials and labor) into outputs (like goods and services). Historically, productivity, wages and profits rise and fall in lock step. But the American economy is less productive today than it was in the post-World War II period, when unions were at peak strength. The economies of other rich countries have slowed as well, including those with more highly unionized work forces, but it is clear that diluting labor power in America did not unleash economic growth or deliver prosperity to more people. “We were promised economic dynamism in exchange for inequality,” Eric Posner and Glen Weyl write in their book “Radical Markets.” “We got the inequality, but dynamism is actually declining.”

As workers lost power, their jobs got worse. For several decades after World War II, ordinary workers’ inflation-adjusted wages (known as “real wages”) increased by 2 percent each year. But since 1979, real wages have grown by only 0.3 percent a year. Astonishingly, workers with a high school diploma made 2.7 percent less in 2017 than they would have in 1979, adjusting for inflation. Workers without a diploma made nearly 10 percent less.

Lousy, underpaid work is not an indispensable, if regrettable, byproduct of capitalism, as some business defenders claim today. (This notion would have scandalized capitalism’s earliest defenders. John Stuart Mill, arch advocate of free people and free markets, once said that if widespread scarcity was a hallmark of capitalism, he would become a communist.) But capitalism is inherently about owners trying to give as little, and workers trying to get as much, as possible. With unions largely out of the picture, corporations have chipped away at the conventional midcentury work arrangement, which involved steady employment, opportunities for advancement and raises and decent pay with some benefits.

As the sociologist Gerald Davis has put it: Our grandparents had careers. Our parents had jobs. We complete tasks. Or at least that has been the story of the American working class and working poor.

Poor Americans aren’t just exploited in the labor market. They face consumer exploitation in the housing and financial markets as well.

There is a long history of slum exploitation in America. Money made slums because slums made money. Rent has more than doubled over the past two decades, rising much faster than renters’ incomes. Median rent rose from $483 in 2000 to $1,216 in 2021. Why have rents shot up so fast? Experts tend to offer the same rote answers to this question. There’s not enough housing supply, they say, and too much demand. Landlords must charge more just to earn a decent rate of return. Must they? How do we know?

We need more housing; no one can deny that. But rents have jumped even in cities with plenty of apartments to go around. At the end of 2021, almost 19 percent of rental units in Birmingham, Ala., sat vacant, as did 12 percent of those in Syracuse, N.Y. Yet rent in those areas increased by roughly 14 percent and 8 percent, respectively, over the previous two years. National data also show that rental revenues have far outpaced property owners’ expenses in recent years, especially for multifamily properties in poor neighborhoods. Rising rents are not simply a reflection of rising operating costs. There’s another dynamic at work, one that has to do with the fact that poor people — and particularly poor Black families — don’t have much choice when it comes to where they can live. Because of that, landlords can overcharge them, and they do.

A study I published with Nathan Wilmers found that after accounting for all costs, landlords operating in poor neighborhoods typically take in profits that are double those of landlords operating in affluent communities. If down-market landlords make more, it’s because their regular expenses (especially their mortgages and property-tax bills) are considerably lower than those in upscale neighborhoods. But in many cities with average or below-average housing costs — think Buffalo, not Boston — rents in the poorest neighborhoods are not drastically lower than rents in the middle-class sections of town. From 2015 to 2019, median monthly rent for a two-bedroom apartment in the Indianapolis metropolitan area was $991; it was $816 in neighborhoods with poverty rates above 40 percent, just around 17 percent less. Rents are lower in extremely poor neighborhoods, but not by as much as you would think.

Yet where else can poor families live? They are shut out of homeownership because banks are disinclined to issue small-dollar mortgages, and they are also shut out of public housing, which now has waiting lists that stretch on for years and even decades. Struggling families looking for a safe, affordable place to live in America usually have but one choice: to rent from private landlords and fork over at least half their income to rent and utilities. If millions of poor renters accept this state of affairs, it’s not because they can’t afford better alternatives; it’s because they often aren’t offered any.

You can read injunctions against usury in the Vedic texts of ancient India, in the sutras of Buddhism and in the Torah. Aristotle and Aquinas both rebuked it. Dante sent moneylenders to the seventh circle of hell. None of these efforts did much to stem the practice, but they do reveal that the unprincipled act of trapping the poor in a cycle of debt has existed at least as long as the written word. It might be the oldest form of exploitation after slavery. Many writers have depicted America’s poor as unseen, shadowed and forgotten people: as “other” or “invisible.” But markets have never failed to notice the poor, and this has been particularly true of the market for money itself.

The deregulation of the banking system in the 1980s heightened competition among banks. Many responded by raising fees and requiring customers to carry minimum balances. In 1977, over a third of banks offered accounts with no service charge. By the early 1990s, only 5 percent did. Big banks grew bigger as community banks shuttered, and in 2021, the largest banks in America charged customers almost $11 billion in overdraft fees. Previous research showed that just 9 percent of account holders paid 84 percent of these fees. Who were the unlucky 9 percent? Customers who carried an average balance of less than $350. The poor were made to pay for their poverty.

In 2021, the average fee for overdrawing your account was $33.58. Because banks often issue multiple charges a day, it’s not uncommon to overdraw your account by $20 and end up paying $200 for it. Banks could (and do) deny accounts to people who have a history of overextending their money, but those customers also provide a steady revenue stream for some of the most powerful financial institutions in the world.

Every year: almost $11 billion in overdraft fees, $1.6 billion in check-cashing fees and up to $8.2 billion in payday-loan fees.

According to the F.D.I.C., one in 19 U.S. households had no bank account in 2019, amounting to more than seven million families. Compared with white families, Black and Hispanic families were nearly five times as likely to lack a bank account. Where there is exclusion, there is exploitation. Unbanked Americans have created a market, and thousands of check-cashing outlets now serve that market. Check-cashing stores generally charge from 1 to 10 percent of the total, depending on the type of check. That means that a worker who is paid $10 an hour and takes a $1,000 check to a check-cashing outlet will pay $10 to $100 just to receive the money he has earned, effectively losing one to 10 hours of work. (For many, this is preferable to the less-predictable exploitation by traditional banks, with their automatic overdraft fees. It’s the devil you know.) In 2020, Americans spent $1.6 billion just to cash checks. If the poor had a costless way to access their own money, over a billion dollars would have remained in their pockets during the pandemic-induced recession.

Poverty can mean missed payments, which can ruin your credit. But just as troublesome as bad credit is having no credit score at all, which is the case for 26 million adults in the United States. Another 19 million possess a credit history too thin or outdated to be scored. Having no credit (or bad credit) can prevent you from securing an apartment, buying insurance and even landing a job, as employers are increasingly relying on credit checks during the hiring process. And when the inevitable happens — when you lose hours at work or when the car refuses to start — the payday-loan industry steps in.

For most of American history, regulators prohibited lending institutions from charging exorbitant interest on loans. Because of these limits, banks kept interest rates between 6 and 12 percent and didn’t do much business with the poor, who in a pinch took their valuables to the pawnbroker or the loan shark. But the deregulation of the banking sector in the 1980s ushered the money changers back into the temple by removing strict usury limits. Interest rates soon reached 300 percent, then 500 percent, then 700 percent. Suddenly, some people were very interested in starting businesses that lent to the poor. In recent years, 17 states have brought back strong usury limits, capping interest rates and effectively prohibiting payday lending. But the trade thrives in most places. The annual percentage rate for a two-week $300 loan can reach 460 percent in California, 516 percent in Wisconsin and 664 percent in Texas.

Roughly a third of all payday loans are now issued online, and almost half of borrowers who have taken out online loans have had lenders overdraw their bank accounts. The average borrower stays indebted for five months, paying $520 in fees to borrow $375. Keeping people indebted is, of course, the ideal outcome for the payday lender. It’s how they turn a $15 profit into a $150 one. Payday lenders do not charge high fees because lending to the poor is risky — even after multiple extensions, most borrowers pay up. Lenders extort because they can.

Every year: almost $11 billion in overdraft fees, $1.6 billion in check-cashing fees and up to $8.2 billion in payday-loan fees. That’s more than $55 million in fees collected predominantly from low-income Americans each day — not even counting the annual revenue collected by pawnshops and title loan services and rent-to-own schemes. When James Baldwin remarked in 1961 how “extremely expensive it is to be poor,” he couldn’t have imagined these receipts.

“Predatory inclusion” is what the historian Keeanga-Yamahtta Taylor calls it in her book “Race for Profit,” describing the longstanding American tradition of incorporating marginalized people into housing and financial schemes through bad deals when they are denied good ones. The exclusion of poor people from traditional banking and credit systems has forced them to find alternative ways to cash checks and secure loans, which has led to a normalization of their exploitation. This is all perfectly legal, after all, and subsidized by the nation’s richest commercial banks. The fringe banking sector would not exist without lines of credit extended by the conventional one. Wells Fargo and JPMorgan Chase bankroll payday lenders like Advance America and Cash America. Everybody gets a cut.

Poverty isn’t simply the condition of not having enough money. It’s the condition of not having enough choice and being taken advantage of because of that. When we ignore the role that exploitation plays in trapping people in poverty, we end up designing policy that is weak at best and ineffective at worst. For example, when legislation lifts incomes at the bottom without addressing the housing crisis, those gains are often realized instead by landlords, not wholly by the families the legislation was intended to help. A 2019 study conducted by the Federal Reserve Bank of Philadelphia found that when states raised minimum wages, families initially found it easier to pay rent. But landlords quickly responded to the wage bumps by increasing rents, which diluted the effect of the policy. This happened after the pandemic rescue packages, too: When wages began to rise in 2021 after worker shortages, rents rose as well, and soon people found themselves back where they started or worse.

Antipoverty programs work. Each year, millions of families are spared the indignities and hardships of severe deprivation because of these government investments. But our current antipoverty programs cannot abolish poverty by themselves. The Johnson administration started the War on Poverty and the Great Society in 1964. These initiatives constituted a bundle of domestic programs that included the Food Stamp Act, which made food aid permanent; the Economic Opportunity Act, which created Job Corps and Head Start; and the Social Security Amendments of 1965, which founded Medicare and Medicaid and expanded Social Security benefits. Nearly 200 pieces of legislation were signed into law in President Lyndon B. Johnson’s first five years in office, a breathtaking level of activity. And the result? Ten years after the first of these programs were rolled out in 1964, the share of Americans living in poverty was half what it was in 1960.

But the War on Poverty and the Great Society were started during a time when organized labor was strong, incomes were climbing, rents were modest and the fringe banking industry as we know it today didn’t exist. Today multiple forms of exploitation have turned antipoverty programs into something like dialysis, a treatment designed to make poverty less lethal, not to make it disappear.

This means we don’t just need deeper antipoverty investments. We need different ones, policies that refuse to partner with poverty, policies that threaten its very survival. We need to ensure that aid directed at poor people stays in their pockets, instead of being captured by companies whose low wages are subsidized by government benefits, or by landlords who raise the rents as their tenants’ wages rise, or by banks and payday-loan outlets who issue exorbitant fines and fees. Unless we confront the many forms of exploitation that poor families face, we risk increasing government spending only to experience another 50 years of sclerosis in the fight against poverty.

The best way to address labor exploitation is to empower workers. A renewed contract with American workers should make organizing easy. As things currently stand, unionizing a workplace is incredibly difficult. Under current labor law, workers who want to organize must do so one Amazon warehouse or one Starbucks location at a time. We have little chance of empowering the nation’s warehouse workers and baristas this way. This is why many new labor movements are trying to organize entire sectors. The Fight for $15 campaign, led by the Service Employees International Union, doesn’t focus on a single franchise (a specific McDonald’s store) or even a single company (McDonald’s) but brings together workers from several fast-food chains. It’s a new kind of labor power, and one that could be expanded: If enough workers in a specific economic sector — retail, hotel services, nursing — voted for the measure, the secretary of labor could establish a bargaining panel made up of representatives elected by the workers. The panel could negotiate with companies to secure the best terms for workers across the industry. This is a way to organize all Amazon warehouses and all Starbucks locations in a single go.

Sectoral bargaining, as it’s called, would affect tens of millions of Americans who have never benefited from a union of their own, just as it has improved the lives of workers in Europe and Latin America. The idea has been criticized by members of the business community, like the U.S. Chamber of Commerce, which has raised concerns about the inflexibility and even the constitutionality of sectoral bargaining, as well as by labor advocates, who fear that industrywide policies could nullify gains that existing unions have made or could be achieved only if workers make other sacrifices. Proponents of the idea counter that sectoral bargaining could even the playing field, not only between workers and bosses, but also between companies in the same sector that would no longer be locked into a race to the bottom, with an incentive to shortchange their work force to gain a competitive edge. Instead, the companies would be forced to compete over the quality of the goods and services they offer. Maybe we would finally reap the benefits of all that economic productivity we were promised.

We must also expand the housing options for low-income families. There isn’t a single right way to do this, but there is clearly a wrong way: the way we’re doing it now. One straightforward approach is to strengthen our commitment to the housing programs we already have. Public housing provides affordable homes to millions of Americans, but it’s drastically underfunded relative to the need. When the wealthy township of Cherry Hill, N.J., opened applications for 29 affordable apartments in 2021, 9,309 people applied. The sky-high demand should tell us something, though: that affordable housing is a life changer, and families are desperate for it.

We could also pave the way for more Americans to become homeowners, an initiative that could benefit poor, working-class and middle-class families alike — as well as scores of young people. Banks generally avoid issuing small-dollar mortgages, not because they’re riskier — these mortgages have the same delinquency rates as larger mortgages — but because they’re less profitable. Over the life of a mortgage, interest on $1 million brings in a lot more money than interest on $75,000. This is where the federal government could step in, providing extra financing to build on-ramps to first-time homeownership. In fact, it already does so in rural America through the 502 Direct Loan Program, which has moved more than two million families into their own homes. These loans, fully guaranteed and serviced by the Department of Agriculture, come with low interest rates and, for very poor families, cover the entire cost of the mortgage, nullifying the need for a down payment. Last year, the average 502 Direct Loan was for $222,300 but cost the government only $10,370 per loan, chump change for such a durable intervention. Expanding a program like this into urban communities would provide even more low- and moderate-income families with homes of their own.

We should also ensure fair access to capital. Banks should stop robbing the poor and near-poor of billions of dollars each year, immediately ending exorbitant overdraft fees. As the legal scholar Mehrsa Baradaran has pointed out, when someone overdraws an account, banks could simply freeze the transaction or could clear a check with insufficient funds, providing customers a kind of short-term loan with a low interest rate of, say, 1 percent a day.

States should rein in payday-lending institutions and insist that lenders make it clear to potential borrowers what a loan is ultimately likely to cost them. Just as fast-food restaurants must now publish calorie counts next to their burgers and shakes, payday-loan stores should publish the average overall cost of different loans. When Texas adopted disclosure rules, residents took out considerably fewer bad loans. If Texas can do this, why not California or Wisconsin? Yet to stop financial exploitation, we need to expand, not limit, low-income Americans’ access to credit. Some have suggested that the government get involved by having the U.S. Postal Service or the Federal Reserve issue small-dollar loans. Others have argued that we should revise government regulations to entice commercial banks to pitch in. Whatever our approach, solutions should offer low-income Americans more choice, a way to end their reliance on predatory lending institutions that can get away with robbery because they are the only option available.

In Tommy Orange’s novel, “There There,” a man trying to describe the problem of suicides on Native American reservations says: “Kids are jumping out the windows of burning buildings, falling to their deaths. And we think the problem is that they’re jumping.” The poverty debate has suffered from a similar kind of myopia. For the past half-century, we’ve approached the poverty question by pointing to poor people themselves — posing questions about their work ethic, say, or their welfare benefits — when we should have been focusing on the fire. The question that should serve as a looping incantation, the one we should ask every time we drive past a tent encampment, those tarped American slums smelling of asphalt and bodies, or every time we see someone asleep on the bus, slumped over in work clothes, is simply: Who benefits? Not: Why don’t you find a better job? Or: Why don’t you move? Or: Why don’t you stop taking out payday loans? But: Who is feeding off this?

Those who have amassed the most power and capital bear the most responsibility for America’s vast poverty: political elites who have utterly failed low-income Americans over the past half-century; corporate bosses who have spent and schemed to prioritize profits over families; lobbyists blocking the will of the American people with their self-serving interests; property owners who have exiled the poor from entire cities and fueled the affordable-housing crisis. Acknowledging this is both crucial and deliciously absolving; it directs our attention upward and distracts us from all the ways (many unintentional) that we — we the secure, the insured, the housed, the college-educated, the protected, the lucky — also contribute to the problem.

Corporations benefit from worker exploitation, sure, but so do consumers, who buy the cheap goods and services the working poor produce, and so do those of us directly or indirectly invested in the stock market. Landlords are not the only ones who benefit from housing exploitation; many homeowners do, too, their property values propped up by the collective effort to make housing scarce and expensive. The banking and payday-lending industries profit from the financial exploitation of the poor, but so do those of us with free checking accounts, as those accounts are subsidized by billions of dollars in overdraft fees.

Living our daily lives in ways that express solidarity with the poor could mean we pay more; anti-exploitative investing could dampen our stock portfolios. By acknowledging those costs, we acknowledge our complicity. Unwinding ourselves from our neighbors’ deprivation and refusing to live as enemies of the poor will require us to pay a price. It’s the price of our restored humanity and renewed country.

Matthew Desmond is a professor of sociology at Princeton University and a contributing writer for the magazine. His latest book, “Poverty, by America,” from which this article is adapted, is being published on March 21 by Crown.

An earlier version of this article referred incorrectly to the legal protections for undocumented workers. They are afforded rights under U.S. labor laws, though in practice those laws often fail to protect them.

An earlier version of this article implied an incorrect date for a statistic about overdraft fees. The research was conducted between 2005 and 2012, not in 2021.

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2.4 The Consequences of Poverty

Learning objectives.

• Describe the family and housing problems associated with poverty.
• Explain how poverty affects health and educational attainment.

Regardless of its causes, poverty has devastating consequences for the people who live in it. Much research conducted and/or analyzed by scholars, government agencies, and nonprofit organizations has documented the effects of poverty (and near poverty) on the lives of the poor (Lindsey, 2009; Moore, et. al., 2009; Ratcliffe & McKernan, 2010; Sanders, 2011). Many of these studies focus on childhood poverty, and these studies make it very clear that childhood poverty has lifelong consequences. In general, poor children are more likely to be poor as adults, more likely to drop out of high school, more likely to become a teenaged parent, and more likely to have employment problems. Although only 1 percent of children who are never poor end up being poor as young adults, 32 percent of poor children become poor as young adults (Ratcliffe & McKernan, 2010).

Poor children are more likely to have inadequate nutrition and to experience health, behavioral, and cognitive problems.

Kelly Short – Poverty: “Damaged Child,” Oklahoma City, OK, USA, 1936. (Colorized). – CC BY-SA 2.0.

A recent study used government data to follow children born between 1968 and 1975 until they were ages 30 to 37 (Duncan & Magnuson, 2011). The researchers compared individuals who lived in poverty in early childhood to those whose families had incomes at least twice the poverty line in early childhood. Compared to the latter group, adults who were poor in early childhood

• had completed two fewer years of schooling on the average;
• had incomes that were less than half of those earned by adults who had wealthier childhoods;
• received $826 more annually in food stamps on the average;
• were almost three times more likely to report being in poor health;
• were twice as likely to have been arrested (males only); and
• were five times as likely to have borne a child (females only).

We discuss some of the major specific consequences of poverty here and will return to them in later chapters.

Family Problems

The poor are at greater risk for family problems, including divorce and domestic violence. As Chapter 9 “Sexual Behavior” explains, a major reason for many of the problems families experience is stress. Even in families that are not poor, running a household can cause stress, children can cause stress, and paying the bills can cause stress. Families that are poor have more stress because of their poverty, and the ordinary stresses of family life become even more intense in poor families. The various kinds of family problems thus happen more commonly in poor families than in wealthier families. Compounding this situation, when these problems occur, poor families have fewer resources than wealthier families to deal with these problems.

Children and Our Future

Getting under Children’s Skin: The Biological Effects of Childhood Poverty

As the text discusses, childhood poverty often has lifelong consequences. Poor children are more likely to be poor when they become adults, and they are at greater risk for antisocial behavior when young, and for unemployment, criminal behavior, and other problems when they reach adolescence and young adulthood.

According to growing evidence, one reason poverty has these consequences is that it has certain neural effects on poor children that impair their cognitive abilities and thus their behavior and learning potential. As Greg J. Duncan and Katherine Magnuson (Duncan & Magnuson, 2011, p. 23) observe, “Emerging research in neuroscience and developmental psychology suggests that poverty early in a child’s life may be particularly harmful because the astonishingly rapid development of young children’s brains leaves them sensitive (and vulnerable) to environmental conditions.”

In short, poverty can change the way the brain develops in young children. The major reason for this effect is stress. Children growing up in poverty experience multiple stressful events: neighborhood crime and drug use; divorce, parental conflict, and other family problems, including abuse and neglect by their parents; parental financial problems and unemployment; physical and mental health problems of one or more family members; and so forth. Their great levels of stress in turn affect their bodies in certain harmful ways. As two poverty scholars note, “It’s not just that poverty-induced stress is mentally taxing. If it’s experienced early enough in childhood, it can in fact get ‘under the skin’ and change the way in which the body copes with the environment and the way in which the brain develops. These deep, enduring, and sometimes irreversible physiological changes are the very human price of running a high-poverty society” (Grusky & Wimer, 2011, p. 2).

One way poverty gets “under children’s skin” is as follows (Evans, et. al., 2011). Poor children’s high levels of stress produce unusually high levels of stress hormones such as cortisol and higher levels of blood pressure. Because these high levels impair their neural development, their memory and language development skills suffer. This result in turn affects their behavior and learning potential. For other physiological reasons, high levels of stress also affect the immune system, so that poor children are more likely to develop various illnesses during childhood and to have high blood pressure and other health problems when they grow older, and cause other biological changes that make poor children more likely to end up being obese and to have drug and alcohol problems.

The policy implications of the scientific research on childhood poverty are clear. As public health scholar Jack P. Shonkoff (Shonkoff, 2011) explains, “Viewing this scientific evidence within a biodevelopmental framework points to the particular importance of addressing the needs of our most disadvantaged children at the earliest ages.” Duncan and Magnuson (Duncan & Magnuson, 2011) agree that “greater policy attention should be given to remediating situations involving deep and persistent poverty occurring early in childhood.” To reduce poverty’s harmful physiological effects on children, Skonkoff advocates efforts to promote strong, stable relationships among all members of poor families; to improve the quality of the home and neighborhood physical environments in which poor children grow; and to improve the nutrition of poor children. Duncan and Magnuson call for more generous income transfers to poor families with young children and note that many European democracies provide many kinds of support to such families. The recent scientific evidence on early childhood poverty underscores the importance of doing everything possible to reduce the harmful effects of poverty during the first few years of life.

Health, Illness, and Medical Care

The poor are also more likely to have many kinds of health problems, including infant mortality, earlier adulthood mortality, and mental illness, and they are also more likely to receive inadequate medical care. Poor children are more likely to have inadequate nutrition and, partly for this reason, to suffer health, behavioral, and cognitive problems. These problems in turn impair their ability to do well in school and land stable employment as adults, helping to ensure that poverty will persist across generations. Many poor people are uninsured or underinsured, at least until the US health-care reform legislation of 2010 takes full effect a few years from now, and many have to visit health clinics that are overcrowded and understaffed.

As Chapter 12 “Work and the Economy” discusses, it is unclear how much of poor people’s worse health stems from their lack of money and lack of good health care versus their own behavior such as smoking and eating unhealthy diets. Regardless of the exact reasons, however, the fact remains that poor health is a major consequence of poverty. According to recent research, this fact means that poverty is responsible for almost 150,000 deaths annually, a figure about equal to the number of deaths from lung cancer (Bakalar, 2011).

Poor children typically go to rundown schools with inadequate facilities where they receive inadequate schooling. They are much less likely than wealthier children to graduate from high school or to go to college. Their lack of education in turn restricts them and their own children to poverty, once again helping to ensure a vicious cycle of continuing poverty across generations. As Chapter 10 “The Changing Family” explains, scholars debate whether the poor school performance of poor children stems more from the inadequacy of their schools and schooling versus their own poverty. Regardless of exactly why poor children are more likely to do poorly in school and to have low educational attainment, these educational problems are another major consequence of poverty.

Housing and Homelessness

The poor are, not surprisingly, more likely to be homeless than the nonpoor but also more likely to live in dilapidated housing and unable to buy their own homes. Many poor families spend more than half their income on rent, and they tend to live in poor neighborhoods that lack job opportunities, good schools, and other features of modern life that wealthier people take for granted. The lack of adequate housing for the poor remains a major national problem. Even worse is outright homelessness. An estimated 1.6 million people, including more than 300,000 children, are homeless at least part of the year (Lee, et. al., 2010).

Crime and Victimization

As Chapter 7 “Alcohol and Other Drugs” discusses, poor (and near poor) people account for the bulk of our street crime (homicide, robbery, burglary, etc.), and they also account for the bulk of victims of street crime. That chapter will outline several reasons for this dual connection between poverty and street crime, but they include the deep frustration and stress of living in poverty and the fact that many poor people live in high-crime neighborhoods. In such neighborhoods, children are more likely to grow up under the influence of older peers who are already in gangs or otherwise committing crime, and people of any age are more likely to become crime victims. Moreover, because poor and near-poor people are more likely to commit street crime, they also comprise most of the people arrested for street crimes, convicted of street crime, and imprisoned for street crime. Most of the more than 2 million people now in the nation’s prisons and jails come from poor or near-poor backgrounds. Criminal behavior and criminal victimization, then, are other major consequences of poverty.

Lessons from Other Societies

Poverty and Poverty Policy in Other Western Democracies

To compare international poverty rates, scholars commonly use a measure of the percentage of households in a nation that receive less than half of the nation’s median household income after taxes and cash transfers from the government. In data from the late 2000s, 17.3 percent of US households lived in poverty as defined by this measure. By comparison, other Western democracies had the rates depicted in the figure that follows. The average poverty rate of the nations in the figure excluding the United States is 9.5 percent. The US rate is thus almost twice as high as the average for all the other democracies.

This graph illustrates the poverty rates in western democracies (i.e., the percentage of persons living with less than half of the median household income) as of the late 2000s

Source: Data from Organisation for Economic Co-operation and Development (OECD). (2011). Society at a glance 2011: OECD social indicators. Retrieved July 23, 2011, from http://www.oecd-ilibrary.org/sites/soc_glance-2011-en/06/02/index.html;jsessionid=erdqhbpb203ea.epsilon?contentType=&itemId=/content/chapter/soc_glance-2011-17-en&containerItemId=/content/se .

Why is there so much more poverty in the United States than in its Western counterparts? Several differences between the United States and the other nations stand out (Brady, 2009; Russell, 2011). First, other Western nations have higher minimum wages and stronger labor unions than the United States has, and these lead to incomes that help push people above poverty. Second, these other nations spend a much greater proportion of their gross domestic product on social expenditures (income support and social services such as child-care subsidies and housing allowances) than does the United States. As sociologist John Iceland (Iceland, 2006) notes, “Such countries often invest heavily in both universal benefits, such as maternity leave, child care, and medical care, and in promoting work among [poor] families…The United States, in comparison with other advanced nations, lacks national health insurance, provides less publicly supported housing, and spends less on job training and job creation.” Block and colleagues agree: “These other countries all take a more comprehensive government approach to combating poverty, and they assume that it is caused by economic and structural factors rather than bad behavior” (Block et, al., 2006).

The experience of the United Kingdom provides a striking contrast between the effectiveness of the expansive approach used in other wealthy democracies and the inadequacy of the American approach. In 1994, about 30 percent of British children lived in poverty; by 2009, that figure had fallen by more than half to 12 percent. Meanwhile, the US 2009 child poverty rate, was almost 21 percent.

Britain used three strategies to reduce its child poverty rate and to help poor children and their families in other ways. First, it induced more poor parents to work through a series of new measures, including a national minimum wage higher than its US counterpart and various tax savings for low-income workers. Because of these measures, the percentage of single parents who worked rose from 45 percent in 1997 to 57 percent in 2008. Second, Britain increased child welfare benefits regardless of whether a parent worked. Third, it increased paid maternity leave from four months to nine months, implemented two weeks of paid paternity leave, established universal preschool (which both helps children’s cognitive abilities and makes it easier for parents to afford to work), increased child-care aid, and made it possible for parents of young children to adjust their working hours to their parental responsibilities (Waldfogel, 2010). While the British child poverty rate fell dramatically because of these strategies, the US child poverty rate stagnated.

In short, the United States has so much more poverty than other democracies in part because it spends so much less than they do on helping the poor. The United States certainly has the wealth to follow their example, but it has chosen not to do so, and a high poverty rate is the unfortunate result. As the Nobel laureate economist Paul Krugman (2006, p. A25) summarizes this lesson, “Government truly can be a force for good. Decades of propaganda have conditioned many Americans to assume that government is always incompetent…But the [British experience has] shown that a government that seriously tries to reduce poverty can achieve a lot.”

Key Takeaways

• Poor people are more likely to have several kinds of family problems, including divorce and family conflict.
• Poor people are more likely to have several kinds of health problems.
• Children growing up in poverty are less likely to graduate high school or go to college, and they are more likely to commit street crime.

For Your Review

• Write a brief essay that summarizes the consequences of poverty.
• Why do you think poor children are more likely to develop health problems?

Bakalar, N. (2011, July 4). Researchers link deaths to social ills. New York Times , p. D5.

Block, F., Korteweg, A. C., & Woodward, K. (2006). The compassion gap in American poverty policy. Contexts, 5 (2), 14–20.

Brady, D. (2009). Rich democracies, poor people: How politics explain poverty . New York, NY: Oxford University Press.

Duncan, G. J., & Magnuson, K. (2011, winter). The long reach of early childhood poverty. Pathways: A Magazine on Poverty, Inequality, and Social Policy , 22–27.

Evans, G. W., Brooks-Gunn, J., & Klebanov, P. K. (2011, winter). Stressing out the poor: Chronic physiological stress and the income-achievement gap. Pathways: A Magazine on Poverty, Inequality, and Social Policy , 16–21.

Grusky, D., & Wimer, C.(Eds.). (2011, winter). Editors’ note. Pathways: A Magazine on Poverty, Inequality, and Social Policy , 2.

Iceland, J. (2006). Poverty in America: A handbook . Berkeley, CA: University of California Press.

Krugman, P. (Krugman, 2006). Helping the poor, the British way. New York Times , p. A25.

Lee, B., Tyler, K. A., & Wright, J. D. ( 2010). The new homelessness revisited. Annual Review of Sociology, 36 , 501–521.

Lindsey, D. (2009). Child poverty and inequality: Securing a better future for America’s children . New York, NY: Oxford University Press.

Moore, K. A., Redd, Z., Burkhauser, M., Mbawa, K., & Collins, A. (2009). Children in poverty: Trends, consequences, and policy options . Washington, DC: Child Trends. Retrieved from http://www.childtrends.org/Files//Child_Trends-2009_04_07_RB_ChildreninPoverty.pdf .

Ratcliffe, C., & McKernan, S.-M. (2010). Childhood poverty persistence: Facts and consequences . Washington, DC: Urban Institute Press.

Russell, J. W. ( 2011). Double standard: Social policy in Europe and the United States (2nd ed.). Lanham, MD: Rowman & Littlefield.

Sanders, L. (2011). Neuroscience exposes pernicious effects of poverty. Science News, 179 (3), 32.

Shonkoff, J. P. (2011, winter). Building a foundation for prosperity on the science of early childhood development. Pathways: A Magazine on Poverty, Inequality, and Social Policy , 10–14.

Waldfogel, J. (2010). Britain’s war on poverty . New York, NY: Russell Sage Foundation.

Social Problems Copyright © 2015 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

Why poverty is not a personal choice, but a reflection of society

Research Investigator of Psychiatry, Public Health, and Poverty Solutions, University of Michigan

Disclosure statement

Shervin Assari does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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As the Senate prepares to modify its version of the health care bill, now is a good time to back up and examine why we as a nation are so divided about providing health care, especially to the poor.

I believe one reason the United States is cutting spending on health insurance and safety nets that protect poor and marginalized people is because of American culture, which overemphasizes individual responsibility. Our culture does this to the point that it ignores the effect of root causes shaped by society and beyond the control of the individual. How laypeople define and attribute poverty may not be that much different from the way U.S. policymakers in the Senate see poverty.

As someone who studies poverty solutions and social and health inequalities, I am convinced by the academic literature that the biggest reason for poverty is how a society is structured. Without structural changes, it may be very difficult if not impossible to eliminate disparities and poverty.

Social structure

About 13.5 percent of Americans are living in poverty. Many of these people do not have insurance, and efforts to help them gain insurance, be it through Medicaid or private insurance, have been stymied. Medicaid provides insurance for the disabled, people in nursing homes and the poor.

Four states recently asked the Centers for Medicare and Medicaid Services for permission to require Medicaid recipients in their states who are not disabled or elderly to work.

This request is reflective of the fact that many Americans believe that poverty is, by and large, the result of laziness , immorality and irresponsibility.

In fact, poverty and other social miseries are in large part due to social structure , which is how society functions at a macro level. Some societal issues, such as racism, sexism and segregation, constantly cause disparities in education, employment and income for marginalized groups. The majority group naturally has a head start, relative to groups that deal with a wide range of societal barriers on a daily basis. This is what I mean by structural causes of poverty and inequality.

Poverty: Not just a state of mind

We have all heard that the poor and minorities need only make better choices – work hard, stay in school, get married, do not have children before they can afford them. If they did all this, they wouldn’t be poor.

Just a few weeks ago, Housing Secretary Ben Carson called poverty “ a state of mind .” At the same time, his budget to help low-income households could be cut by more than US$6 billion next year.

This is an example of a simplistic view toward the complex social phenomenon. It is minimizing the impact of a societal issue caused by structure – macro‐level labor market and societal conditions – on individuals’ behavior. Such claims also ignore a large body of sociological science.

American independence

Americans have one of the most independent cultures on Earth. A majority of Americans define people in terms of internal attributes such as choices , abilities, values, preferences, decisions and traits.

This is very different from interdependent cultures , such as eastern Asian countries where people are seen mainly in terms of their environment, context and relationships with others.

A direct consequence of independent mindsets and cognitive models is that one may ignore all the historical and environmental conditions, such as slavery, segregation and discrimination against women, that contribute to certain outcomes. When we ignore the historical context, it is easier to instead attribute an unfavorable outcome, such as poverty, to the person.

Views shaped by politics

Many Americans view poverty as an individual phenomenon and say that it’s primarily their own fault that people are poor. The alternative view is that poverty is a structural phenomenon. From this viewpoint, people are in poverty because they find themselves in holes in the economic system that deliver them inadequate income.

The fact is that people move in and out of poverty. Research has shown that 45 percent of poverty spells last no more than a year, 70 percent last no more than three years and only 12 percent stretch beyond a decade.

The Panel Study of Income Dynamics ( PSID ), a 50-year longitudinal study of 18,000 Americans, has shown that around four in 10 adults experience an entire year of poverty from the ages of 25 to 60. The last Survey of Income and Program Participation ( SIPP ), a longitudinal survey conducted by the U.S. Census, had about one-third of Americans in episodic poverty at some point in a three-year period, but just 3.5 percent in episodic poverty for all three years.

Why calling the poor ‘lazy’ is victim blaming

If one believes that poverty is related to historical and environmental events and not just to an individual, we should be careful about blaming the poor for their fates.

Victim blaming occurs when the victim of a crime or any wrongful act is held entirely or partially responsible for the harm that befell them. It is a common psychological and societal phenomenon. Victimology has shown that humans have a tendency to perceive victims at least partially responsible . This is true even in rape cases, where there is a considerable tendency to blame victims and is true particularly if the victim and perpetrator know each other.

I believe all our lives could be improved if we considered the structural influences as root causes of social problems such as poverty and inequality. Perhaps then, we could more easily agree on solutions.

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• Health disparities
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• US Senate health care bill
• US health care reform

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5 Essays About Poverty Everyone Should Know

Poverty is one of the driving forces of inequality in the world. Between 1990-2015, much progress was made. The number of people living on less than $1.90 went from 36% to 10%. However, according to the World Bank , the COVID-19 pandemic represents a serious problem that disproportionately impacts the poor. Research released in February of 2020 shows that by 2030, up to ⅔ of the “global extreme poor” will be living in conflict-affected and fragile economies. Poverty will remain a major human rights issue for decades to come. Here are five essays about the issue that everyone should know:

“We need an economic bill of rights” –  Martin Luther King Jr.

The Guardian published an abridged version of this essay in 2018, which was originally released in Look magazine just after Dr. King was killed. In this piece, Dr. King explains why an economic bill of rights is necessary. He points out that while mass unemployment within the black community is a “social problem,” it’s a “depression” in the white community. An economic bill of rights would give a job to everyone who wants one and who can work. It would also give an income to those who can’t work. Dr. King affirms his commitment to non-violence. He’s fully aware that tensions are high. He quotes a spiritual, writing “timing is winding up.” Even while the nation progresses, poverty is getting worse.

This essay was reprinted and abridged in The Guardian in an arrangement with The Heirs to the Estate of Martin Luther King. Jr. The most visible representative of the Civil Rights Movement beginning in 1955, Dr. King was assassinated in 1968. His essays and speeches remain timely.

“How Poverty Can Follow Children Into Adulthood” – Priyanka Boghani

This article is from 2017, but it’s more relevant than ever because it was written when 2012 was the worst economic crisis since the Great Depression. That’s no longer the case. In 2012, around ¼ American children were in poverty. Five years later, children were still more likely than adults to be poor. This is especially true for children of colour. Consequences of poverty include anxiety, hunger, and homelessness. This essay also looks at the long-term consequences that come from growing up in poverty. A child can develop health problems that affect them in adulthood. Poverty can also harm a child’s brain development. Being aware of how poverty affects children and follows them into adulthood is essential as the world deals with the economic fallout from the pandemic.

Priyanka Boghani is a journalist at PBS Frontline. She focuses on U.S. foreign policy, humanitarian crises, and conflicts in the Middle East. She also assists in managing Frontline’s social accounts.

“5 Reasons COVID-19 Will Impact the Fight to End Extreme Poverty” – Leah Rodriguez

For decades, the UN has attempted to end extreme poverty. In the face of the novel coronavirus outbreak, new challenges threaten the fight against poverty. In this essay, Dr. Natalie Linos, a Harvard social epidemiologist, urges the world to have a “social conversation” about how the disease impacts poverty and inequality. If nothing is done, it’s unlikely that the UN will meet its Global Goals by 2030. Poverty and COVID-19 intersect in five key ways. For one, low-income people are more vulnerable to disease. They also don’t have equal access to healthcare or job stability. This piece provides a clear, concise summary of why this outbreak is especially concerning for the global poor.

Leah Rodriguez’s writing at Global Citizen focuses on women, girls, water, and sanitation. She’s also worked as a web producer and homepage editor for New York Magazine’s The Cut.

“Climate apartheid”: World’s poor to suffer most from disasters” – Al Jazeera and news Agencies

The consequences of climate change are well-known to experts like Philip Alston, the special rapporteur on extreme poverty and human rights. In 2019, he submitted a report to the UN Human Rights Council sounding the alarm on how climate change will devastate the poor. While the wealthy will be able to pay their way out of devastation, the poor will not. This will end up creating a “climate apartheid.” Alston states that if climate change isn’t addressed, it will undo the last five decades of progress in poverty education, as well as global health and development .

“Nickel and Dimed: On (not) getting by in America” – Barbara Ehrenreich

In this excerpt from her book Nickel and Dimed, Ehrenreich describes her experience choosing to live undercover as an “unskilled worker” in the US. She wanted to investigate the impact the 1996 welfare reform act had on the working poor. Released in 2001, the events take place between the spring of 1998 and the summer of 2000. Ehrenreich decided to live in a town close to her “real life” and finds a place to live and a job. She has her eyes opened to the challenges and “special costs” of being poor. In 2019, The Guardian ranked the book 13th on their list of 100 best books of the 21st century.

Barbara Ehrenreich is the author of 21 books and an activist. She’s worked as an award-winning columnist and essayist.

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About the author, emmaline soken-huberty.

Emmaline Soken-Huberty is a freelance writer based in Portland, Oregon. She started to become interested in human rights while attending college, eventually getting a concentration in human rights and humanitarianism. LGBTQ+ rights, women’s rights, and climate change are of special concern to her. In her spare time, she can be found reading or enjoying Oregon’s natural beauty with her husband and dog.

Poverty as a Social Problem

This free essay on poverty as a social problem looks at a grave problem that exists in America and in the world. It provides reasons why people are experiencing poverty as well as some solutions.

Introduction

Literature review, poverty as a social problem: reflection, solutions to poverty as a social problem, social problems: poverty essay conclusion.

Society often perceives poverty as an individualistic issue, believing it is a consequence of bad decisions. That is, people themselves are responsible for the level of income and financial stability of households. However, the subject is much more complex as poverty also results from inadequate structuring of the country’s economy, distribution of goods, and other sectors, making it a social problem. Failure to build a system that would help citizens become financially stable results in various issues associated with crime levels, education, health care, and others. The government is the one that should work to solve them.

There are numerous studies and publications researching the reasons behind poverty. E. Royce (2019) tries to explain in his book how the existing economic system in the United States prevents citizens from reaching an adequate level of income and financial support. The main idea is that the current structure of how goods are distributed across the population does not benefit a large portion of it. Few rich individuals grow wealthier yearly, while millions struggle to find a stable job with a minimum wage.

The inequality created by the government’s failure to build a fair economic system results in a range of social problems. The idea of a poverty line as a measure of well-being has not changed much since the 1960s despite the obvious changes in consumption patterns (Royce, 2019). It is calculated as the sum required for purchasing essential items for living, which does not include modern commodities such as computers, mobile phones, and others.

As a result, low-income people become socially isolated since they do not possess things essential for the modern lifestyle, like social networks. They may be excluded from a community for not corresponding with the public image of active individuals. These mechanisms, combined with the dominant idea of the necessity to achieve success, push poor people away from social life. This factor comes together with the inability to receive proper health care and education services.

The literature also contains studies on how poverty affects the behavior of individuals. For instance, children exposed to life in a low-income household are more likely to develop adverse reactions in the future due to strain resulting from the inability to receive wished items (McFarland, 2017). When placed in a densely populated neighborhood, they may later cause legal problems, creating delinquent areas.

It is easy to predict the social issues that poor people face daily. They cannot receive proper health care services as they are usually costly. Moreover, many commercial organizations offering low-paid jobs traditionally based on customer service may prevent employees from taking sick leaves. As a result, people suffer from various illnesses without attending a hospital, fearing to lose a work placement.

Another issue is the inability of poor people to send their children to high-performing schools, which are expensive as a rule. This factor causes youth to continue living with the same income level as their parents since the absence of quality education prevents them from receiving a decent job. Moreover, children who cannot acquire goods valued by their peers are likely to adopt criminal behavior to achieve success since community norms and morals do not help this purpose.

Summarizing all the above said, it becomes evident that changing the existing economic structure on the governmental level is the most appropriate solution to the issue of poverty. There should be a strategy covering all the aspects affected by this problem. The goal is to increase the level of financial support for disadvantaged groups and give more opportunities for people to grow their income.

Firstly, the social sector should be transformed to meet the needs of all citizens. The government should increase the financing of schools so that all children will have access to quality education. Also, various programs should engage youth in activities after classes. Another step is to make health care affordable for everyone, and there should be no pressure on workers when they decide to take sick leaves.

Secondly, the structure of budget spending should be redesigned. It is evident that social support programs require much financing from taxes. One of the possible strategies is to make the government spend less on other sectors. Also, solving the issue of delinquent behavior among youth by advancing social support may cut costs on police functioning as there will be a lower need for services such as patrolling.

Poverty is a structural problem resulting from a country’s inadequate economic system. It creates various social issues associated with poor health care services, low-quality education, criminal activity, and others. Poverty is a complex subject that cannot be resolved shortly. However, one of the possible strategies is to provide better financial and social support for the population, which will create more opportunities for people to increase their income level.

McFarland, M. (2017). Poverty and problem behaviors across the early life course: The role of sensitive period exposure. Population Research & Policy Review , 36 (5), 739-760.

Royce, E. (2019). Poverty and power: The problem of structural inequality (3rd ed.). Lanham, MD: Rowman & Littlefield.

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108 Social Issues Essay Topic Ideas & Examples

Inside This Article

Social issues are complex and multifaceted problems that affect individuals, communities, and societies as a whole. These issues can range from poverty and inequality to discrimination and environmental degradation. Writing an essay on a social issue can be a daunting task, but it can also be a rewarding experience that allows you to explore and analyze important topics that impact the world around you.

To help you get started, here are 108 social issues essay topic ideas and examples that you can use as inspiration for your next writing assignment:

• The impact of social media on mental health
• Income inequality and its effects on society
• Police brutality and the Black Lives Matter movement
• The rise of fake news and its impact on democracy
• Gender inequality in the workplace
• Climate change and its effects on vulnerable communities
• The opioid crisis and its impact on communities
• The criminal justice system and racial disparities
• Homelessness and poverty in America
• The refugee crisis and global migration patterns
• LGBTQ+ rights and discrimination
• The rise of nationalism and its impact on global politics
• Gun control and mass shootings in America
• Environmental racism and its effects on marginalized communities
• The impact of globalization on developing countries
• Mental health stigma and access to treatment
• Cyberbullying and online harassment
• The #MeToo movement and sexual harassment in the workplace
• Access to healthcare and the rising cost of medical care
• The impact of technology on social relationships
• Food insecurity and hunger in America
• The effects of gentrification on low-income communities
• Disability rights and accessibility
• The criminalization of poverty and homelessness
• Human trafficking and modern-day slavery
• The impact of colonialism on indigenous communities
• The rise of authoritarianism and threats to democracy
• The education achievement gap and disparities in schools
• Mental health challenges facing college students
• The impact of social isolation on mental health
• The influence of religion on social norms and values
• The effects of gentrification on cultural identity
• The impact of social media on political discourse
• The role of activism in social change
• Access to clean water and sanitation in developing countries
• The impact of social media on body image and self-esteem
• The effects of income inequality on public health
• The criminalization of drug addiction and mental illness
• The impact of climate change on indigenous communities

These are just a few examples of social issues that you can explore in your essay. Remember to choose a topic that you are passionate about and that you feel strongly about. Researching and writing about social issues can be a powerful way to raise awareness and advocate for change in the world. Good luck with your essay!

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The Social Consequences of Poverty: An Empirical Test on Longitudinal Data

Carina mood.

Institute for Futures Studies, Box 591, 101 31 Stockholm, Sweden

Swedish Institute for Social Research (SOFI), Stockholm University, Stockholm, Sweden

Jan O. Jonsson

Nuffield College, OX1 1NF Oxford, England, UK

Poverty is commonly defined as a lack of economic resources that has negative social consequences, but surprisingly little is known about the importance of economic hardship for social outcomes. This article offers an empirical investigation into this issue. We apply panel data methods on longitudinal data from the Swedish Level-of-Living Survey 2000 and 2010 (n = 3089) to study whether poverty affects four social outcomes—close social relations (social support), other social relations (friends and relatives), political participation, and activity in organizations. We also compare these effects across five different poverty indicators. Our main conclusion is that poverty in general has negative effects on social life. It has more harmful effects for relations with friends and relatives than for social support; and more for political participation than organizational activity. The poverty indicator that shows the greatest impact is material deprivation (lack of cash margin), while the most prevalent poverty indicators—absolute income poverty, and especially relative income poverty—appear to have the least effect on social outcomes.

Introduction

According to the most influential definitions, poverty is seen as a lack of economic resources that have negative social consequences—this is in fact a view that dominates current theories of poverty (Townsend 1979 ; Sen 1983 ; UN 1995 ), and also has a long heritage (Smith 1776 /1976). The idea is that even when people have food, clothes, and shelter, economic problems lead to a deterioration of social relations and participation. Being poor is about not being able to partake in society on equal terms with others, and therefore in the long run being excluded by fellow citizens or withdrawing from social and civic life because of a lack of economic resources, typically in combination with the concomitant shame of not being able to live a life like them (e.g., Sen 1983 ). Economic hardship affects the standard of life, consumption patterns, and leisure time activities, and this is directly or indirectly related to the possibility of making or maintaining friends or acquaintances: poverty is revealed by not having appropriate clothes, or a car; by not being able to afford vacation trips, visits to the restaurant, or hosting dinner parties (e.g., Mack and Lansley 1985 ; Callan et al. 1993 )—in short, low incomes prevent the poor from living a life in “decency” (Galbraith 1958 ).

The relational nature of poverty is also central to the social exclusion literature, which puts poverty in a larger perspective of multiple disadvantages and their interrelationships (Hills et al. 2002 , Rodgers et al. 1995 ; Room 1995 ). While there are different definitions of the social exclusion concept, the literature is characterized by a move from distributional to relational concerns (Gore 1995 ) and by an emphasis on the importance of social integration and active participation in public life. The inability of living a decent or “ordinary” social life may in this perspective erode social networks, social relations, and social participation, potentially setting off a downward spiral of misfortune (Paugam 1995 ) reinforcing disadvantages in several domains of life. This perspective on poverty and social exclusion is essentially sociological: the playing field of the private economy is social. It is ultimately about individuals’ relations with other people—not only primary social relations, with kin and friends, but extending to secondary relations reflected by participation in the wider community, such as in organizations and in political life (UN 1995 ).

Despite the fact that the social consequences of limited economic resources are central to modern perspectives on poverty and marginalization, this relation is surprisingly seldom studied empirically. Qualitative research on the poor give interesting examples on how the negative effects of poverty works, and portray the way that economic problems are transformed into social ones (Ridge and Millar 2011 ; Attree 2006 ). Such studies, however, have too small sample sizes to generalize to the population, and they cannot tell us much about the range of the problem. The (relatively few) studies that have addressed the association between poverty and social outcomes on larger scale tend to verify that the poor have worse social relations (Böhnke 2008 ; Jonsson and Östberg 2004 ; Levitas 2006 ), but Barnes et al. ( 2002 ) did not find any noteworthy association between poverty (measured as relative income poverty, using the 60 %-limit) and social relations or social isolation. Dahl et al. ( 2008 ) found no relation between poverty and friendships, but report less participation in civic organizations among the poor. All these studies have however been limited to cross-sectional data or hampered by methodological shortcomings, and therefore have not been able to address the separation of selection effects from potentially causal ones.

Our aim in this study is to make good these omissions. We use longitudinal data from the Swedish Level of Living Surveys (LNU) 2000 and 2010 to study how falling into poverty, or rising from it, is associated with outcomes in terms of primary and secondary social relations, including participation in civil society. These panel data make it possible to generalize the results to the Swedish adult population (19–65 in 2000; 29–75 in 2010), to address the issue of causality, and to estimate how strong the relation between economic vulnerability and social outcomes is. Because the data provide us with the possibility of measuring poverty in several ways, we are also able to address the question using different—alternative or complementary—indicators. Poverty is measured as economic deprivation (lack of cash margin, self-reported economic problems), income poverty (absolute and relative), and long-term poverty, respectively. The primary, or core, social outcomes are indicated by having social support if needed, and by social relations with friends and relatives. We expand our analysis to secondary, or fringe, social outcomes in terms of participation in social life at large, such as in civil society: our indicators here include the participation in organizations and in political life.

Different Dimensions/Definitions of Poverty

In modern welfare states, the normal take on the issue of poverty is to regard it as the relative lack of economic resources, that is, to define the poor in relation to their fellow citizens in the same country at the same time. Three approaches dominate the scholarly literature today. The first takes as a point of departure the income deemed necessary for living a life on par with others, or that makes possible an “acceptable” living standard—defined as the goods and services judged necessary, often on the basis of consumer or household budget studies. This usage of a poverty threshold is often (somewhat confusingly) called absolute income poverty , and is most common in North America (cf. Corak 2006 for a review), although most countries have poverty lines defined for different kinds of social benefits. In Europe and in the OECD, the convention is instead to use versions of relative income poverty , defining as poor those whose incomes fall well behind the median income in the country in question (European Union using 60 % and OECD 50 % of the median as the threshold). As an alternative to using purchasing power (as in the “absolute” measure), this relative measure defines poverty by income inequality in the bottom half of the income distribution (Atkinson et al. 2002 ; OECD 2008 ).

The third approach argues that income measures are too indirect; poverty should instead be indicated directly by the lack of consumer products and services that are necessary for an acceptable living standard (Mack and Lansley 1985 ; Ringen 1988 ; Townsend 1979 ). This approach often involves listing a number of possessions and conditions, such as having a car, washing machine, modern kitchen; and being able to dine out sometimes, to have the home adequately heated and mended, to have sufficient insurances, and so on. An elaborate version includes information on what people in general see as necessities, what is often termed “consensual” poverty (e.g., Mack and Lansley 1985 ; Gordon et al. 2000 ; Halleröd 1995 ; van den Bosch 2001 ). Other direct indicators include the ability to cover unforeseen costs (cash margin) and subjective definitions of poverty (e.g., van den Bosch 2001 ). The direct approach to poverty has gained in popularity and measures of economic/material deprivation and consensual poverty are used in several recent and contemporary comparative surveys such as ECHP (Whelan et al. 2003 ) and EU-SILC (e.g., UNICEF 2012 ; Nolan and Whelan 2011 ).

It is often pointed out that, due to the often quite volatile income careers of households, the majority of poverty episodes are short term and the group that is identified as poor in the cross-section therefore tends to be rather diluted (Bane and Ellwood 1986 ; Duncan et al. 1993 ). Those who suffer most from the downsides of poverty are, it could be argued, instead the long-term, persistent, or chronically poor, and there is empirical evidence that those who experience more years in poverty also are more deprived of a “common lifestyle” (Whelan et al. 2003 ). Poverty persistence has been defined in several ways, such as having spent a given number of years below a poverty threshold, or having an average income over a number of years that falls under the poverty line (e.g., Duncan and Rodgers 1991 ; Rodgers and Rodgers 1993 ). The persistently poor can only be detected with any precision in longitudinal studies, and typically on the basis of low incomes, as data covering repeated measures of material deprivation are uncommon.

For the purposes of this study, it is not essential to nominate the best or most appropriate poverty measure. The measures outlined above, while each having some disadvantage, all provide plausible theoretical grounds for predicting negative social outcomes. Low incomes, either in “absolute” or relative terms, may inhibit social activities and participation because these are costly (e.g., having decent housing, needing a car, paying membership fees, entrance tickets, or new clothes). Economic deprivation, often indicated by items or habits that are directly relevant to social life, is also a valid representation of a lack of resources. Lastly, to be in long-term poverty is no doubt a worse condition than being in shorter-term poverty.

It is worth underlining that we see different measures of poverty as relevant indicators despite the fact that the overlap between them often is surprisingly small (Bradshaw and Finch 2003 ). The lack of overlap is not necessarily a problem, as different people may have different configurations of economic problems but share in common many of the experiences of poverty—experiences, we argue, that are (in theory at least) all likely to lead to adverse social outcomes. Whether this is the case or not is one of the questions that we address, but if previous studies on child poverty are of any guidance, different definitions of poverty may show surprisingly similar associations with a number of outcomes (Jonsson and Östberg 2004 ).

What are the Likely Social Consequences of Poverty?

We have concluded that poverty is, according to most influential poverty definitions, manifested in the social sphere. This connects with the idea of Veblen ( 1899 ) of the relation between consumption and social status. What you buy and consume—clothes, furniture, vacation trips—in part define who you are, which group you aspire to belong to, and what view others will have of you. Inclusion into and exclusion from status groups and social circles are, in this view, dependent on economic resources as reflected in consumption patterns. While Veblen was mostly concerned about the rich and their conspicuous consumption, it is not difficult to transfer these ideas to the less fortunate: the poor are under risk of exclusion, of losing their social status and identity, and perhaps also, therefore, their friends. It is however likely that this is a process that differs according to outcome, with an unknown time-lag.

If, as outlined above, we can speak of primary and secondary social consequences, the former should include socializing with friends, but also more intimate relations. Our conjecture is that the closer the relation, the less affected is it by poverty, simply because intimate social bonds are characterized by more unconditional personal relations, typically not requiring costs to uphold.

When it comes to the secondary social consequences, we move outside the realm of closer interpersonal relations to acquaintances and the wider social network, and to the (sometimes relatively anonymous) participation in civil or political life. This dimension of poverty lies at the heart of the social exclusion perspective, which strongly emphasizes the broader issues of societal participation and civic engagement, vital to democratic societies. It is also reflected in the United Nation’s definition, following the Copenhagen summit in 1995, where “overall poverty” in addition to lack of economic resources is said to be “…characterized by lack of participation in decision-making and in civil, social, and cultural life” (UN 1995 , p. 57). Poverty may bring about secondary social consequences because such participation is costly—as in the examples of travel, need for special equipment, or membership fees—but also because of psychological mechanisms, such as lowered self-esteem triggering disbelief in civic and political activities, and a general passivity leading to decreased organizational and social activities overall. If processes like these exist there is a risk of a “downward spiral of social exclusion” where unemployment leads to poverty and social isolation, which in turn reduce the chances of re-gaining a footing in the labour market (Paugam 1995 ).

What theories of poverty and social exclusion postulate is, in conclusion, that both what we have called primary and secondary social relations will be negatively affected by economic hardship—the latter supposedly more than the former. Our strategy in the following is to test this basic hypothesis by applying multivariate panel-data analyses on longitudinal data. In this way, we believe that we can come further than previous studies towards estimating causal effects, although, as is the case in social sciences, the causal relation must remain preliminary due to the nature of observational data.

Data and Definitions

We use the two most recent waves of the Swedish Level-of-living Survey, conducted in 2000 and 2010 on random (1/1000) samples of adult Swedes, aged 18–75. 1 The attrition rate is low, with 84 % of panel respondents remaining from 2000 to 2010. This is one of the few data sets from which we can get over-time measures of both poverty and social outcomes for a panel that is representative of the adult population (at the first time point, t 0 )—in addition, there is annual income information from register data between the waves. The panel feature obviously restricts the age-groups slightly (ages 19–65 in 2000; 29–75 in 2010), the final number of analyzed cases being between 2995 and 3144, depending on the number of missing cases on the respective poverty measure and social outcome variable. For ease of interpretation and comparison of effect sizes, we have constructed all social outcome variables and poverty variables to be dichotomous (0/1). 2

In constructing poverty variables, we must balance theoretical validity with the need to have group sizes large enough for statistical analysis. For example, we expand the absolute poverty measure to include those who received social assistance any time during the year. As social assistance recipients receive this benefit based on having an income below a poverty line that is similar to the one we use, this seems justifiable. In other cases, however, group sizes are small but we find no theoretically reasonable way of making the variables more inclusive, meaning that some analyses cannot be carried out in full detail.

Our income poverty measures are based on register data and are thus free from recall error or misreporting, but—as the proponents of deprivation measures point out—income poverty measures are indirect measures of hardship. The deprivation measure is more direct, but self-reporting always carries a risk of subjectivity in the assessment. To the extent that changes in one’s judgment of the economic situation depend on changes in non-economic factors that are also related to social relations, the deprivation measure will give upwardly biased estimates. 3 As there is no general agreement about whether income or deprivation definitions are superior, our use of several definitions is a strength because the results will give an overall picture that is not sensitive to potential limitations in any one measure. In addition, we are able to see whether results vary systematically across commonly used definitions.

Poverty Measures

• Cash margin whether the respondent can raise a given sum of money in a week, if necessary (in 2000, the sum was 12,000 SEK; in 2010, 14,000 SEK, the latter sum corresponding to approximately 1600 Euro, 2200 USD, or 1400 GBP in 2013 currency rates). For those who answer in the affirmative, there is a follow-up question of how this can be done: by (a) own/household resources, (b) borrowing.
• Economic crisis Those who claim that they have had problems meeting costs for rent, food, bills, etc. during the last 12 months (responded “yes” to a yes/no alternative).
• Absolute poverty is defined as either (a) having a disposable family income below a poverty threshold or (b) receiving social assistance, both assessed in 1999 (for the survey 2000) or 2009 (for the survey 2010). The poverty line varies by family type/composition according to a commonly used calculation of household necessities (Jansson 2000 ). This “basket” of goods and services is intended to define an acceptable living standard, and was originally constructed for calculating an income threshold for social assistance, with addition of estimated costs for housing and transport. The threshold is adjusted for changes in the Consumer Price Index, using 2010 as the base year. In order to get analyzable group sizes, we classify anyone with an income below 1.25 times this threshold as poor. Self-employed are excluded because their nominal incomes are often a poor indicator of their economic standard.
• Deprived and income poor A combination of the indicator of economic deprivation and the indicator of absolute poverty. The poor are defined as those who are economically deprived and in addition are either absolute income-poor or have had social assistance some time during the last calendar year.
• Long - term poor are defined as those interviewed in 2010 (2000) who had an equivalized disposable income that fell below the 1.25 absolute poverty threshold (excluding self-employed) or who received social assistance in 2009 (1999), and who were in this situation for at least two of the years 2000–2008 (1990–1998). The long-term poor (coded 1) are contrasted to the non-poor (coded 0), excluding the short-term poor (coded missing) in order to distinguish whether long-term poverty is particularly detrimental (as compared to absolute poverty in general).
• Relative poverty is defined, according to the EU standard, as having a disposable equivalized income that is lower than 60 % of the median income in Sweden the year in question (EU 2005). 4 As for absolute poverty, this variable is based on incomes the year prior to the survey year. Self-employed are excluded.

Social and Participation Outcomes

Primary (core) social relations.

• Social support The value 1 (has support) is given to those who have answered in the positive to three questions about whether one has a close friend who can help if one (a) gets sick, (b) needs someone to talk to about troubles, or (c) needs company. Those who lack support in at least one of these respects are coded 0 (lack of support).
• Frequent social relations This variable is based on four questions about how often one meets (a) relatives and (b) friends, either (i) at ones’ home or (ii) at the home of those one meets, with the response set being “yes, often”, “sometimes”, and “no, never”. Respondents are defined as having frequent relations (1) if they have at least one “often” of the four possible and no “never”, 5 and 0 otherwise.

Secondary (fringe) Social Relations/Participation

• Political participation : Coded 1 (yes) if one during the last 12 months actively participated (held an elected position or was at a meeting) in a trade union or a political party, and 0 (no) otherwise. 6
• Organizational activity : Coded 1 (yes) if one is a member of an organization and actively participate in its activities at least once in a year, and 0 (no) otherwise.

Control Variables

• Age (in years)
• Educational qualifications in 2010 (five levels according to a standard schema used by Statistics Sweden (1985), entered as dummy variables)
• Civil status distinguishes between single and cohabiting/married persons, and is used as a time-varying covariate (TVC) where we register any changes from couple to single and vice versa.
• Immigrant origin is coded 1 if both parents were born in any country outside Sweden, 0 otherwise.
• Labour market status is also used as a TVC, with four values indicating labour market participation (yes/no) in 2000 and 2010, respectively.
• Global self - rated health in 2000, with three response alternatives: Good, bad, or in between. 7

Table  1 shows descriptive statistics for the 2 years we study, 2000 and 2010 (percentages in the upper panel; averages, standard deviations, max and min values in the lower panel). Recall that the sample is longitudinal with the same respondents appearing in both years. This means, naturally, that the sample ages 10 years between the waves, the upper age limit being pushed up from 65 to 75. Both the change over years and the ageing of the sample have repercussions for their conditions: somewhat more have poor health, for example, fewer lack social support but more lack frequent social relations, and more are single in 2010 (where widows are a growing category). The group has however improved their economic conditions, with a sizeable reduction in poverty rates. Most of the changes are in fact period effects, and it is particularly obvious for the change in poverty—in 2000 people still suffered from the deep recession in Sweden that begun in 1991 and started to turn in 1996/97 (Jonsson et al. 2010 ), while the most recent international recession (starting in 2008/09) did not affect Sweden that much.

Table 1

Descriptive statistics of dependent and independent variables in the LNU panel

N for variables used as change variables pertains to non-missing observations in both 2000 and 2010

The overall decrease in poverty masks changes that our respondents experienced between 2000 and 2010: Table  2 reveals these for the measure of economic deprivation, showing the outflow (row) percentages and the total percentages (and the number of respondents in parentheses). It is evident that there was quite a lot of mobility out of poverty between the years (61 % left), but also a very strong relative risk of being found in poverty in 2010 among those who were poor in 2000 (39 vs. 5 % of those who were non-poor in 2000). Of all our respondents, the most common situation was to be non-poor both years (81 %), while few were poor on both occasions (6 %). Table  2 also demonstrates some small cell numbers: 13.3 % of the panel (9.4 % + 3.9 %), or a good 400 cases, changed poverty status, and these cases are crucial for identifying our models. As in many panel studies based on survey data, this will inevitably lead to some problems with large standard errors and difficulties in arriving at statistically significant and precise estimates; but to preview the findings, our results are surprisingly consistent all the same.

Table 2

Mobility in poverty (measured as economic deprivation) in Sweden between 2000 and 2010

Outflow percentage (row %), total percentage, and number of cases (in parentheses). LNU panel 2000–2010

We begin with showing descriptive results of how poverty is associated with our outcome variables, using the economic deprivation measure of poverty. 8 Figure  1 confirms that those who are poor have worse social relationships and participate less in political life and in organizations. Poverty is thus connected with both primary and secondary social relations.

The relation between poverty (measured as economic deprivation) and social relations/participation in Sweden, LNU 2010. N = 5271

The descriptive picture in Fig.  1 does not tell us anything about the causal nature of the relation between poverty and social outcomes, only that such a relation exists, and that it is in the predicted direction: poor people have weaker social relations, less support, and lower levels of political and civic participation. Our task now is to apply more stringent statistical models to test whether the relation we have uncovered is likely to be of a causal nature. This means that we must try to rid the association of both the risk for reverse causality—that, for example, a weaker social network leads to poverty—and the risk that there is a common underlying cause of both poverty and social outcomes, such as poor health or singlehood.

The Change Model

First, as we have panel data, we can study the difference in change across two time-points T (called t 0 and t 1 , respectively) in an outcome variable (e.g., social relations), between groups (i.e. those who changed poverty status versus those who did not). The respondents are assigned to either of these groups on the grounds of entering or leaving poverty; in the first case, one group is non-poor at t 0 but experiences poverty at t 1 , and the change in this group is compared to the group consisting of those who are non-poor both at t 0 and t 1 . The question in focus then is: Do social relations in the group entering poverty worsen in relation to the corresponding change in social relations in the group who remains non-poor? Because we have symmetric hypotheses of the effect of poverty on social outcomes—assuming leaving poverty has positive consequences similar to the negative consequences of entering poverty—we also study whether those who exit poverty improve their social outcomes as compared to those remaining poor. We ask, that is, not only what damage falling into poverty might have for social outcomes, but also what “social gains” could be expected for someone who climbs out of poverty.

Thus, in our analyses we use two different “change groups”, poverty leavers and poverty entrants , and two “comparison groups”, constantly poor and never poor , respectively. 9 The setup comparing the change in social outcomes for those who change poverty status and those who do not is analogous to a so-called difference-in-difference design, but as the allocation of respondents to comparison groups and change groups in our data cannot be assumed to be random (as with control groups and treatment groups in experimental designs), we take further measures to approach causal interpretations.

Accounting for the Starting Value of the Dependent Variable

An important indication of the non-randomness of the allocation to the change and comparison groups is that their average values of the social outcomes (i.e. the dependent variable) at t 0 differ systematically: Those who become poor between 2000 and 2010 have on average worse social outcomes already in 2000 than those who stay out of poverty. Similarly, those who stay in poverty both years have on average worse social outcomes than those who have exited poverty in 2010. In order to further reduce the impact of unobserved variables, we therefore make all comparisons of changes in social outcomes between t 0 and t 1 for fixed t 0 values of both social outcome and poverty status.

As we use dichotomous outcome variables, we get eight combinations of poverty and outcome states (2 × 2 × 2 = 8), and four direct strategic comparisons:

• Poverty leavers versus constantly poor, positive social outcome in 2000 , showing if those who exit poverty have a higher chance of maintaining the positive social outcome than those who stay in poverty
• Poverty leavers versus constantly poor, negative social outcome in 2000 , showing if those who exit poverty have a higher chance of improvement in the social outcome than those who stay in poverty
• Poverty entrants versus never poor, positive social outcome in 2000 , showing if those who enter poverty have a higher risk of deterioration in the social outcome than those who stay out of poverty, and
• Poverty entrants versus never poor, negative social outcome in 2000 , showing if those who enter poverty have a lower chance of improvement in the social outcome.

Thus, we hold the initial social situation and poverty status fixed, letting only the poverty in 2010 vary. 10 The analytical strategy is set out in Table  3 , showing estimates of the probability to have frequent social relations in 2010, for poverty defined (as in Table  2 and Fig.  1 above) as economic deprivation.

Table 3

Per cent with frequent social relations in “comparison” and “change” groups in 2000 and 2010, according to initial value on social relations in 2000 and poverty (measured as economic deprivation) in 2000 and 2010

LNU panel 2000–2010. N = 3083

The figures in Table  3 should be read like this: 0.59 in the upper left cell means that among those who were poor neither in 2000 nor in 2010 (“never poor”, or 0–0), and who had non-frequent social relations to begin with, 59 % had frequent social relations in 2010. Among those never poor who instead started out with more frequent social relations, 90 per cent had frequent social relations in 2010. This difference (59 vs. 90) tells us either that the initial conditions were important (weak social relations can be inherently difficult to improve) or that there is heterogeneity within the group of never poor people, such as some having (to us perhaps unobserved) characteristics that support relation building while others have not.

Because our strategy is to condition on the initial situation in order to minimize the impact of initial conditions and unobserved heterogeneity, we focus on the comparisons across columns. If we follow each column downwards, that is, for a given initial social outcome (weak or not weak social relations, respectively) it is apparent that the outcome is worse for the “poverty entrants” in comparison with the “never poor” (upper three lines). Comparing the change group [those who became poor (0–1)] with the comparison group [never poor (0–0)] for those who started out with weak social relations (left column), the estimated probability of frequent social relations in 2010 is 7 % points lower for those who became poor. Among those who started out with frequent relations, those who became poor have a 17 % points lower probability of frequent relations in 2010 than those who stayed out of poverty.

If we move down Table  3 , to the three bottom lines, the change and comparison groups are now different. The comparison group is the “constantly poor” (1–1), and the change group are “poverty leavers” (1–0). Again following the columns downwards, we can see that the change group improved their social relations in comparison with the constantly poor; and this is true whether they started out with weak social relations or not. In fact, the chance of improvement for those who started off with non-frequent social relations is the most noteworthy, being 33 % units higher for those who escaped poverty than for those who did not. In sum, Table  3 suggests that becoming poor appears to be bad for social relations whereas escaping poverty is beneficial.

Expanding the Model

The model exemplified in Table  3 is a panel model that studies change across time within the same individuals, conditioning on their initial state. It does away with time-constant effects of observed and unobserved respondent characteristics, and although this is far superior to a cross-sectional model (such as the one underlying Fig.  1 ) there are still threats to causal interpretations. It is possible (if probably unusual) that permanent characteristics may trigger a change over time in both the dependent and independent variables; or, put in another way, whether a person stays in or exits poverty may be partly caused by a variable that also predicts change in the outcome (what is sometimes referred to as a violation of the “common trend assumption”). In our case, we can for example imagine that health problems in 2000 can affect who becomes poor in 2010, at t 1 , and that the same health problems can lead to a deterioration of social relations between 2000 and 2010, so even conditioning on the social relations at t 0 will not be enough. This we handle by adding control variables, attempting to condition the comparison of poor and non-poor also on sex, age, highest level of education (in 2010), immigrant status, and health (in 2000). 11

Given the set-up of our data—with 10 years between the two data-points and with no information on the precise time ordering of poverty and social outcomes at t 1 , the model can be further improved by including change in some of the control variables. It is possible, for example, that a non-poor and married respondent in 2000 divorced before 2010, triggering both poverty and reduced social relations at the time of the interview in 2010. 12 There are two major events that in this way may bias our results, divorce/separation and unemployment (because each can lead to poverty, and possibly also affect social outcomes). We handle this by controlling for variables combining civil status and unemployment in 2000 as well as in 2010. To the extent that these factors are a consequence of becoming poor, there is a risk of biasing our estimates downwards (e.g., if becoming poor increases the risk of divorce). However, as there is no way to distinguish empirically whether control variables (divorce, unemployment) or poverty changed first we prefer to report conservative estimates. 13

Throughout, we use logistic regression to estimate our models (one model for each social outcome and poverty definition). We create a dummy variable for each of the combinations of poverty in 2000, poverty in 2010 and the social outcome in 2000, and alternate the reference category in order to get the four strategic comparisons described above. Coefficients do thus express the distance between the relevant change and comparison groups. The coefficients reported are average marginal effects (AME) for a one-unit change in the respective poverty variable (i.e. going from non-poor to poor and vice versa), which are straightforwardly interpretable as percentage unit differences and (unlike odds ratios or log odds ratios) comparable across models and outcomes (Mood 2010 ).

Regression Results

As detailed above, we use changes over time in poverty and social outcomes to estimate the effects of interest. The effect of poverty is allowed to be heterogeneous, and is assessed through four comparisons of the social outcome in 2010 (Y 1 ):

• Those entering poverty relative to those in constant non-poverty (P 01  = 0,1 vs. P 01  = 0,0) when both have favourable social outcomes at t 0 (Y 0  = 1)
• Those exiting poverty relative to those in constant poverty (P 01  = 1,0 vs. P 01  = 1,1) when both have favourable social outcomes at t 0 (Y 0  = 1)
• Those entering poverty relative to those in constant non-poverty (P 01  = 0,1 vs. P 01  = 0,0) when both have non-favourable social outcomes at t 0 (Y 0  = 0)
• Those exiting poverty relative to those in constant poverty (P 01  = 1,0 vs. P 01  = 1,1) when both have non-favourable social outcomes at t 0 (Y 0  = 0)

Poverty is a rare outcome, and as noted above it is particularly uncommon to enter poverty between 2000 and 2010 because of the improving macro-economic situation. Some of the social outcomes were also rare in 2000. This unfortunately means that in some comparisons we have cell frequencies that are prohibitively small, and we have chosen to exclude all comparisons involving cells where N < 20.

The regression results are displayed in Table  4 . To understand how the estimates come to be, consider the four in the upper left part of the Table (0.330, 0.138, −0.175 and −0.065), reflecting the effect of poverty, measured as economic deprivation, on the probability of having frequent social relations. Because these estimates are all derived from a regression without any controls, they are identical (apart from using three decimal places) to the percentage comparisons in Table  3 (0.33, 0.14, −0.17, −0.07), and can be straightforwardly interpreted as average differences in the probability of the outcome in question. From Table  4 it is clear that the three first differences are all statistically significant, whereas the estimate −0.07 is not (primarily because those who entered poverty in 2010 and had infrequent social relations in 2000 is a small group, N = 25).

Table 4

Average marginal effects (from logistic regression) of five types of poverty (1–5) on four social outcomes (A-D) comparing those with different poverty statuses in 2000 and 2010 and conditioning on the starting value of the social outcome (in 2000)

Right columns control for sex, education, age, immigrant status, health in 2000, civil status change between 2000 and 2010, and unemployment change between 2000 and 2010. P values in parentheses. Excluded estimates involve variable categories with N < 20. Shaded cells are in hypothesized direction, bold estimates are statistically significant ( P  < 0.05). N in regressions: 1A: 3075; 1B: 3073; 1C: 3075; 1D: 3069; 2A: 3144; 2B: 3137; 2C: 3144; 2D: 3130; 3A: 3074, 3B: 3072; 3C: 3074; 3D: 3068; 4A: 2995; 4B: 2988; 4C: 2995; 4D: 2981; 5A: 3128; 5B: 3121; 5C: 3128; 5D: 3114

In the column to the right, we can see what difference the controls make: the estimates are reduced, but not substantially so, and the three first differences are still statistically significant.

The estimates for each social outcome, reflecting the four comparisons described above, support the hypothesis of poverty affecting social relations negatively (note that the signs of the estimates should differ in order to do so, the upper two being positive as they reflect an effect of the exit from poverty, and the lower two being negative as they reflect an effect of entering poverty). We have indicated support for the hypothesis in Table  4 by shading the estimates and standard errors for estimates that go in the predicted direction.

Following the first two columns down, we can see that there is mostly support for the hypothesis of a negative effect of poverty, but when controlling for other variables, the effects on social support are not impressive. In fact, if we concentrate on each social outcome (i.e., row-wise), one conclusion is that, when controlling for confounders, there are rather small effects of poverty on the probability of having access to social support. The opposite is true for political participation, where the consistency in the estimated effects of poverty is striking.

If we instead follow the columns, we ask whether any of the definitions of poverty is a better predictor of social outcomes than the others. The measure of economic deprivation appears to be the most stable one, followed by absolute poverty and the combined deprivation/absolute poverty variable. 14 The relative poverty measure is less able to predict social outcomes: in many instances it even has the non-expected sign. Interestingly, long-term poverty (as measured here) does not appear to have more severe negative consequences than absolute poverty in general.

Because some of our comparison groups are small, it is difficult to get high precision in the estimates, efficiency being a concern particularly in view of the set of control variables in Table  4 . Only 14 out of 62 estimates in models with controls are significant and in the right direction. Nonetheless, with 52 out of 62 estimates in these models having the expected sign, we believe that the hypothesis of a negative effect of poverty on social outcomes receives quite strong support.

Although control variables are not shown in the table, one thing should be noted about them: The reduction of coefficients when including control variables is almost exclusively driven by changes in civil status. 15 The time constant characteristics that are included are cross-sectionally related to both poverty and social outcomes, but they have only minor impacts on the estimated effects of poverty. This suggests that the conditioning on prior values of the dependent and independent variables eliminates much time invariant heterogeneity, which increases the credibility of estimates.

Conclusions

We set out to test a fundamental, but rarely questioned assumption in dominating definitions of poverty: whether shortage of economic resources has negative consequences for social relations and participation. By using longitudinal data from the Swedish Level-of-living Surveys 2000 and 2010, including repeated measures of poverty (according to several commonly used definitions) and four social outcome variables, we are able to come further than previous studies in estimating the relation between poverty and social outcomes: Our main conclusion is that there appears to be a causal relation between them.

Panel models suggest that falling into poverty increases the risk of weakening social relations and decreasing (civic and political) participation. Climbing out of poverty tends to have the opposite effects, a result that strengthens the interpretation of causality. The sample is too small to estimate the effect sizes with any precision, yet they appear to be substantial, with statistically significant estimates ranging between 5 and 21 % units.

While these findings are disquieting insofar as poverty goes, our results also suggest two more positive results. First, the negative effects of poverty appear to be reversible: once the private economy recovers, social outcomes improve. Secondly, the negative consequences are less for the closest social relations, whether there is someone there in cases of need (sickness, personal problems, etc.). This is in line with an interpretation of such close relations being unconditional: our nearest and dearest tend to hang on to us also in times of financial troubles, which may bolster risks for social isolation and psychological ill-being,

Our finding of negative effects of poverty on civic and political participation relates to the fears of a “downward spiral of social exclusion”, as there is a risk that the loss of less intimate social relations shrinks social networks and decreases the available social capital in terms of contacts that can be important for outcomes such as finding a job (e.g., Lin 2001 ; Granovetter 1974 ). However, Gallie et al. ( 2003 ) found no evidence for any strong impact of social isolation on unemployment, suggesting that the negative effects on social outcomes that we observe are unlikely to lead to self-reinforcement of poverty. Nevertheless, social relations are of course important outcomes in their own right, so if they are negatively affected by poverty it matters regardless of whether social relations in turn are important for other outcomes. Effects on political and civic participation are also relevant in themselves beyond individuals’ wellbeing, as they suggest a potentially democratic problem where poor have less of a voice and less influence on society than others.

Our results show the merits of our approach, to study the relation between poverty and social outcomes longitudinally. The fact that the poor have worse social relations and lower participation is partly because of selection. This may be because the socially isolated, or those with a weaker social network, more easily fall into poverty; or it can be because of a common denominator, such as poor health or social problems. But once we have stripped the analysis of such selection effects, we also find what is likely to be a causal relation between poverty and social relations. However, this effect of poverty on social outcomes, in turn, varies between different definitions of poverty. Here it appears that economic deprivation, primarily indicated by the ability of raising money with short notice, is the strongest predictor of social outcomes. Income poverty, whether in absolute or (particularly) relative terms, are weaker predictors of social outcomes, which is interesting as they are the two most common indicators of poverty in existing research.

Even if we are fortunate to have panel data at our disposal, there are limitations in our analyses that render our conclusions tentative. One is that we do not have a random allocation to the comparison groups at t 0 ; another that there is a 10-year span between the waves that we analyze, and both poverty and social outcomes may vary across this time-span. We have been able to address these problems by conditioning on the outcome at t 0 and by controlling for confounders, but in order to perform more rigorous tests future research would benefit from data with a more detailed temporal structure, and preferably with an experimental or at least quasi-experimental design.

Finally, our analyses concern Sweden, and given the position as an active welfare state with a low degree of inequality and low poverty rates, one can ask whether the results are valid also for other comparable countries. While both the level of poverty and the pattern of social relations differ between countries (for policy or cultural reasons), we believe that the mechanisms linking poverty and social outcomes are of a quite general kind, especially as the “costs for social participation” can be expected to be relative to the general wealth of a country—however, until comparative longitudinal data become available, this must remain a hypothesis for future research.

1 http://www.sofi.su.se/english/2.17851/research/three-research-departments/lnu-level-of-living .

2 We have tested various alternative codings and the overall pattern of results in terms of e.g., direction of effects and differences across poverty definitions are similar, but more difficult to present in an accessible way.

3 Our deprivation questions are however designed to reduce the impact of subjectivity by asking, e.g., about getting a specified sum within a specified time (see below).

4 In the equivalence scale, the first adult gets a weight of one, the second of 0.6, and each child gets a weight of 0.5.

5 We have also tried using single indicators (either a/b or i/ii) without detecting any meaningful difference between them. One would perhaps have assumed that poverty would be more consequential for having others over to one’s own place, but the absence of support for this can perhaps be understood in light of the strong social norm of reciprocity in social relations.

6 We have refrained from using information on voting and membership in trade unions and political parties, because these indicators do not capture the active, social nature of civic engagement to the same extent as participation in meetings and the holding of positions.

7 We have also estimated models with a more extensive health variable, a s ymptom index , which sums responses to 47 questions about self-reported health symptoms. However, this variable has virtually zero effects once global self-rated health is controlled, and does not lead to any substantive differences in other estimates. Adding the global health measure and the symptom index as TVC had no effect either.

8 Using the other indicators of poverty yields very similar results, although for some of those the difference between poor and non-poor is smaller.

9 We call these comparison groups ”never poor” and ”constantly poor” for expository purposes, although their poverty status pertains only to the years 2000 and 2010, i.e., without information on the years in between.

10 With this design we allow different effects of poverty on improvement versus deterioration of the social outcome. We have also estimated models with a lagged dependent variable, which constrains the effects of poverty changes to be of the same size for deterioration as for improvement of the social outcome. Conclusions from that analysis are roughly a weighted average of the estimates for deterioration and improvement that we report. As our analyses suggest that effects of poverty differ in size depending on the value of the lagged dependent variable (the social outcome) our current specification gives a more adequate representation of the process.

11 We have also tested models with a wider range of controls for, e.g., economic and social background (i.e. characteristics of the respondent’s parents), geography, detailed family type and a more detailed health variable, but none of these had any impact on the estimated poverty effects.

12 It is also possible that we register reverse causality, namely if worsening social outcomes that occur after t 0 lead to poverty at t 1 . This situation is almost inevitable when using panel data with no clear temporal ordering of events occurring between waves. However, reverse causality strikes us, in this case, as theoretically implausible.

13 We have also estimated models controlling for changes in health, which did not change the results.

14 If respondents’ judgments of the deprivation questions (access to cash margin and ability to pay rent, food, bills etc.) change due to non-economic factors that are related to changes in social relations, the better predictive capacity of the deprivation measure may be caused by a larger bias in this measure than in the (register-based) income measures.

15 As mentioned above, this variable may to some extent be endogenous (i.e., a mediator of the poverty effect rather than a confounder), in which case we get a downward bias of estimates.

Contributor Information

Carina Mood, Phone: +44-8-402 12 22, Email: [email protected] .

Jan O. Jonsson, Phone: +44 1865 278513, Email: [email protected] .

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What Happened to Poverty in America in 2021

Volunteers fill boxes at the Food Bank for the Heartland distribution warehouse in Omaha, Nebraska, on Dec. 8, 2021. FRONTLINE has tracked how poverty affects American families with children across several years and films. (Dan Brouillette/Bloomberg via Getty Images)

When it comes to tracking how poverty impacts American families, and especially children, estimates for 2021 reveal something noteworthy.

Pandemic-era benefits may have helped drive poverty in 2021 lower than in 2020, according to researchers at Columbia University’s Center on Poverty & Social Policy and at the nonprofit Urban Institute. By one measure, last year was already a notable low, with the U.S. Census Bureau’s 2020 supplemental poverty rate — which factors in families’ expenses, as well as government assistance like stimulus checks — falling to its lowest since the estimate was first published, in 2009.

FRONTLINE has been documenting how poverty impacts families — and especially children — for several years, including in the documentaries Poor Kids (2017) and Growing Up Poor in America (2020).

The Census Bureau’s annual poverty figures for 2021 won’t be available until well into next year. While researchers estimated that poverty declined in 2021, they cautioned that the trend could be temporary, with many pandemic-era benefits ending. So where does that leave American families now?

Did Pandemic-Era Policies Affect Poverty in 2021?

Zachary Parolin has been leading the Columbia researchers’ monthly estimates of U.S. poverty since the start of the pandemic. According to the team’s data, the poverty rate in December 2020 — when many pandemic-related benefits had expired — was 16.1% . But when some benefits were renewed or extended in January 2021, the monthly poverty estimate declined to 13.2% .

“In fact, throughout the entire year of 2021 , the poverty rate has been lower than that 16.1% that we saw in December 2020,” Parolin said. The Columbia team estimated that poverty in 2021 rose to a high of 14.3% in February and declined to 9.3% — its lowest level of the year — in March, when families received economic impact payments, as well as income tax and child tax credits.

“The last two years taken together have probably shown us more clearly than any time in recent history how much policy matters,” Megan Curran, a Columbia researcher said. The team’s research found that without the early pandemic aid provided by the March 2020 CARES Act, poverty rates could potentially have rivaled those during the Great Recession. She cited federal actions — economic impact payments (also known as stimulus checks), expanded unemployment insurance, increased food assistance and other measures — in averting a worst-case scenario.

The researchers also looked closely at the expanded child tax credit, put in place by Congress’ March 2021 American Rescue Plan. When the expanded credit went into effect in July, it raised benefits from $2,000 to $3,600 for children under 6 and to $3,000 for children ages 6 to 17. It reached families that didn’t earn enough income to owe taxes, and it was paid in monthly installments from July to December 2021, instead of all at once in 2022.

The Columbia researchers found that measure alone kept roughly 3.5 million children out of poverty in each month for which data is available.

“We haven’t seen these types of reductions in a long time,” Parolin said of the credit’s effect on childhood poverty, noting the persistently low poverty rates among children during the months the credit was available. (December 2021 is the last month eligible families will receive the payment, unless a version of the credit is renewed in the Build Back Better legislation currently facing hurdles in the Senate. With no Republican support, the legislation’s passage would rely on Sen. Joe Manchin, D-W.Va., who in the past has expressed reservations that the expanded child tax credit has no  work requirement .)

Read more: How COVID Has Impacted Poverty in America

Researchers at the Urban Institute also examined the impacts of pandemic-era benefits and stimulus measures. Looking at 2021 as a whole, they projected government-assistance programs — both those that existed pre-COVID and those created in response to the pandemic — would reduce the 2021 poverty rate by 67% , compared to what it would have been with no government assistance, and would keep nearly 50 million Americans out of poverty over the course of the year.

“What we observed were some of the largest short-term reductions in poverty that we’ve seen,” said Ilham Dehry, a co-author of the Urban Institute report . Their projections showed stimulus checks having the largest antipoverty impact, keeping 12.4 million people from falling into poverty in 2021. That echoes the Census Bureau’s findings for 2020 , when stimulus checks kept 11.7 million people out of poverty.

The Urban Institute projected that benefits — both pre-COVID and pandemic-era — would reduce poverty among children by 81% in 2021, compared to without benefits. Their projections showed a lower poverty rate for children than for all adults and those over 65 — a seeming reversal of a trend over the last decade, when the poverty rate for children has been higher than for other age groups. Dehry said the 2021 reductions in child poverty “might reflect the targeted nature of some of the aid,” such as the expanded child tax credit and per-child stimulus payments for families.

Some economists have argued that extending the expanded child tax credit “will serve as a disincentive to work” and, with parents leaving the workforce, that it would blunt the poverty-reduction effects of the credit.

Gregory Acs, vice president for income and benefits policy at the Urban Institute, said extending the expanded child tax credit would allow researchers to learn more about how it shapes people’s behavior, including whether it leads adults to work less or to spend more time with their children.

“Reducing child poverty has the potential to have profound intergenerational benefits,” Acs said. “If kids are not poor, if households are not stressed by poverty, then they’re more likely to … do better in school, get more education and be on a better path forward as adults.”

What Happened to Food Hardship?

In December 2020, Joseph Llobrera, director of research on food assistance at the Center on Budget and Policy Priorities, described food hardship — or families not getting enough to eat — as “off the charts”: 18.3% among households with children, according to data he analyzed from the Census Bureau’s Household Pulse Survey.

The U.S. Department of Agriculture also showed food hardship increasing in 2020 for families with children, and for Black and Hispanic families, although the percent of food insecure households in 2020 remained the same as in 2019: 10.5%. Data from a survey sponsored by the USDA also showed that 2.3% more households reported using food pantries in 2020 as compared to a year earlier.

Read more: “I Don’t Want to Live Like This Forever”: A 14-Year-Old’s Story of “Hidden Homelessness” Amid the Coronavirus Pandemic

To counteract the pandemic’s impact, the federal government expanded food assistance in several ways. Families eligible for Supplemental Nutrition Assistance Program (SNAP) could receive supplemental emergency allotments . An EBT program launched in March 2020 allowed the families of kids who usually would get free or reduced-price lunches at school to receive temporary benefits to purchase food. SNAP benefits increased 15% from January through September 2021. Then a long-planned modernization of SNAP benefits kicked in in October, raising benefits 27% compared to without pandemic-era increases.

Llobrera found that overall food hardship, as measured by the Household Pulse Survey, dropped between December 2020 and January 2021 then dropped again in mid-March 2021 and once again in mid-July — the latter coinciding with the rollout of the expanded child tax credit. At the same time, Llobrera said food hardship among households without children stayed flat or worsened.

After dropping to a low of 9.5% during the summer of 2021, the percent of households with children who didn’t get enough to eat crept back up to 11.8% by October, the most recent month for which data was available .

While Llobrera is still trying to understand the full impact of these programs, he said, “Even with the data that we have, it’s shown … overall poverty rates, food insecurity rates, those would be so much higher, and hardship would have been so much worse, had those resources not been made available to households that were impacted by the pandemic.”

What’s Happening Now — and What’s Next?

In recent months, the U.S. has seen rising inflation, as well as consumer prices in November reaching their largest 12-month increase since 1982.

Unless the benefits people receive are adjusted for inflation, their “antipoverty effects are going to be eroded,” said Acs of the Urban Institute.

Diane Whitmore Schanzenbach, director of Northwestern University’s Institute for Policy Research, has observed food-hardship rates creeping back up and said it could be partially attributed to rising food prices.

“Of course, low-income families have less slack in their budget. They spend a higher share of their total income on necessities,” she said. “So then, of course, when there are increases in prices of necessities, that harms them disproportionately.”

Read more: Catching Up With 2 of the Kids From ‘Poor Kids’

In addition, several of the pandemic-era measures that helped keep people out of poverty over the last two years were either finite (like the stimulus checks), have since expired (like expanded unemployment benefits and the 15% increase in SNAP benefits) or have no guarantee they will continue (like the expanded child tax credit ).

“We basically see the fortunes of families sort of rise and fall with the timeline of when policies are in place and when they expire,” Columbia’s Curran said. “All of these income supports have just been so critical to keeping families afloat.”

The Columbia researchers predicted that, unless the expanded child tax credit is renewed, signs of increasing child poverty could start to show up in January 2022.

Acs said several factors could impact poverty overall in 2022. If employment goes up, poverty could go down. Or the end of pandemic-era programs could mean higher poverty, and if inflation continues to rise, poverty could be higher still.

“The crisis made us put all these things in place that many people have been calling for for a long time,” Curran said. “But I think it also showed us that when they were in place, they really worked. And so, I think the lesson that policymakers can take away from this is that we have the tools to keep poverty much lower than it has been for the past half a century,” she said.

“It’s just actually a question of: Are we willing to make this commitment on a more permanent basis?”

Priyanka Boghani , Digital Editor , FRONTLINE

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Impact of Poverty on the Society

This is a very challenging question because nearly every ""pressing problem or social issue"" has underlying factors and historical influences. So I will try to explain my understanding of these topics. There are two important lenses from which to consider this issue; first, from the individual circumstance and second, from specific community conditions. The inability of individuals to earn enough money to afford to meet their basic needs and maintain a healthy lifestyle is, in my opinion, the most pressing […]

Poverty in the United States

Poverty is a major issue in our world today, it is when people are not able to afford a minimum standard of living to survive. Poverty is the removal of financial stability to afford necessities. Bill Fay, veteran journalist defined poverty as a pervasive human condition of being unable to obtain or provide a standard level of food, water, and shelter. In 2015, a study was done and reported that 60% of people will experience at least 1 year of […]

Unemployment a Major Cause of Homelessness

Homelessness or known as extreme poverty can be interpreted as a circumstance when people have no place to stay with the result that they end up live in the street, under the bridge even at the side of the river. There are 3.5 million Americans are homeless each year. Of these, more than 1 million are children and on any given night, more than 300,000 children are homeless. They who do not have an occupation are the one that is […]

Breaking the Poverty Trap

One of the reasons the rich get richer, and the poor get poorer, is because of the lack of not knowing and ignorance hindering half the world, allowing the cycle of poverty to continue. Poverty trap is as a spiraling mechanism, that forces people to remain poor binding many to no hope of escaping. The poverty trap has been an ongoing cycle within generations even those close to me, that has tremendously taken a negative toll on society and my […]

Childhood Poverty

Abstract Poverty is viewed throughout the world as a large social problem that continues to advance with time. Since 1960, poverty has continued to flourish into a problem that has affected a large majority of the population, including our children. Childhood poverty affects the psychological and biological development, as well as three main levels of social systems: micro, mezzo and macro. Even though there has been active research on poverty, generational poverty and childhood poverty, no active changes have been […]

Homelessness in the United States

Homelessness is a social problem that has long plagued the United States and surrounding Countries for centuries. It is an economic and social problem that has affected people from all walks of life, including children, families, veterans, and the elderly. Kilgore (2018). States homelessness is believed to have affected an estimated amount of 2.5-3.5 million people each year in the United States alone. Recent evidence suggests economic conditions have increased the number of people affected by homelessness in the United […]

Poverty in Developing Countries

Introduction A. (Opening Device) How many of you ever had to think or worry about your next meal? Most of us, we don't have to think about that, we don't think about where we having that meal. But in developing countries people have to think about everything they do in daily life, The goal for the day is to have meal with family and have a shelter, or to live in a house to hope for better lifestyle. To make […]

Closing the Education Gap by Attacking Poverty Among Children

Looking around the campus of an Ivy League schools, one wonders how students from such diverse backgrounds ultimately wound up at the same place. From having a mother who works in admissions, I grew up hearing that no matter where you came from, your socioeconomic status, and even sometimes your grades, all kids have the potential to attend a prestigious university. However, I find that hard to believe. With a combination of taking this class on homelessness this semester, growing […]

The Patient Protection and Affordable Care Act

Introduction The three main objectives of the Patient Protection and Affordable Care Act, signed in October 2010, include the following: reforming the private insurance market, mainly for individuals and small group purchasers; expanding Medicaid to the working poor, whose maximum income is around 33 percent of the federal poverty level; and altering the way medical decisions are made in the country (Silvers, 2013). These three objectives are primarily determined by private choices rather than government regulation, with the expectation that […]

Financial Education and Poverty

The most pressing social issue that has the most impact on the ability of people to be healthy and economically self-sufficient is financial education. For an individual or family unit to become economically viable, they must be educated in the proper uses of their income. An individual can be gainfully employed and still be in danger of becoming homeless. This occurs when this individual or familial unit exceeds their income through purchases that are not needed. As we approach the […]

The Poverty Among Us

In our current society, poverty is an issue that plagues third world nations. All countries are interwoven with one another because of everyone needing each other for certain resources. When one country is in need, it interrupts a process that all countries have with one another. Poverty is an issue that everyone should pay attention to even if it does not occur where we live or does not affect us directly as much as it does other nations. Not only […]

Effect of Rural-Urban Migation on the Poverty Status of Farming Households in Ogbomoso

CHAPTER ONE INTRODUCTION 1.1 Background of the study Needless to say, poverty is a global problem; however, the menace of poverty is most devastating in the developing countries of the world. Food production has hardly kept pace with population size, and the quantity, as well as quality of health, has also massively deteriorated. According to the World Bank Development Report (2013), about 10.7 percent of the world's population lived below poverty line (US $1.90 a day). Poverty is one of […]

What is Poverty?

Poverty is a pervasive human condition of being unable to obtain or provide a standard level of food, water, and/or shelter (Fay, n.d.). The United States has the highest rate of poverty among wealthy countries. The official poverty line is based on what the federal government considers to be the minimum amount of money required for living at a subsistence level (Kendell, 2018). Sociologists define poverty in two ways: absolute and relative. Absolute poverty is when the household income is […]

Increasing Federal Minimum Wage

The magnitude of the impacts of federal minimum payments has been a typical topic of discussion for years. Economic policymakers and academic researchers base minimum wage discussions in the context of poverty and increasing the wages. However, critics argue that there are many adverse effects on small businesses and the general economy of the country. A rise in the nation payments will have impacts on the economy of the American states in which the increase in minimum wage law is […]

How Poverty Correlates with Non English Speaking American Families

How does poverty affect the people in the United states today? Poverty is currently affecting 16.3 percent of women, 13.8 of men, and 21 percent of all children in America. The highest poverty rate by race is found among Native Americans, which is 27.6 percent. African americans have 26.2 percent poverty and Hispanics having 23.4 percent. How do these families provide for their children and help them succeed if they can barely even pay the bills? Families all over the […]

Poverty and Crime

Poverty isn't the 'mother of crime.' However it is one noteworthy benefactor. Crime exists, since individuals need something they don't have, and are not willing to comply with the law(s) on the books to get it. What poverty does is, it decreases the things needy individuals have accessible to them, along these lines offering undeniably more things for needy individuals to want—and substantially more inspiration to them to carry out a crime to get it. Along these lines, more needy […]

Poverty in America

Poverty has been a ongoing, social issue that throughout the years has changed its meaning. Poverty is defined lacking basic necessities such as water, food, shelter, wealth, etc… About fifty years ago, war was declared on poverty by President Johnson hoping that it would end, but fast forward today, it is one of the biggest social issues America is dealing with. We don’t really know why poverty is still occurring, because the reasons seem to always be changing. The reasons […]

Poverty Life in the Industrial Age

Tenement Housing Tenement housing was cheap, unsanitary, and extremely crowded. They were placed by factories, so the air and water became very polluted and unsafe because of all the fumes and such from the factory. Most didn’t have indoor plumbing or proper ventilation which caused tons of health issues. At night the only light they had was from the streetlights so of course the only level of the housing that had light was the level that was level with the […]

Economic Inequality and Governmental Responsibility

Ever since the emergence of civilization several hundreds of years ago, social inequality has been a prevalent aspect of many societies across the world. This social structure developed as a result of several factors, amongst them political and economic status in the society. During the early stages of civilization, social and political status was closely related whereby the few powerful political leaders tended to be wealthier than the lesser politically influential majority. Although this dynamic is still prevalent in developing […]

Poverty and Homelessness in America

Poverty and Homelessness in America is a daunting subject which everyone recognizes but do not pay attention to. A homeless person is stereotypically thought to be a person who sleeps at the roadside, begging for money and influenced by drug with dirty ragged clothes and a person who is deprived of basic facilities in his or her life such as; education, electricity, proper clothes, shelter, water with a scarcity of balanced diet is termed as person living under the line […]

Poverty in Haiti: is there a Solution?

Abstract Haiti is a Latin American country that is often ignored. People do not hear much about it, except if a natural disaster such as the earthquake in 2010 happens. It was once the richest colony of the Caribbean and nowadays is known as the poorest country of the Western Hemisphere. Haiti has been facing a cycle of poverty since it became independent. Haiti’s location and deforestation have contributed to make the situation worse. More than half of the population […]

Causes of Poverty

Some causes of poverty in the United States are: unemployment, inflation, poor management of resources, government policies, debt, corruption, extreme weather, lack of control in local food, lack of access to education, mental illness ( lack of proper psychiatric care), diseases, automation, and overpopulation. Poverty is a pervasive human condition of being unable to obtain or provide a standard level of food, water and/or shelter. It exists in every country in varying degrees, and it is unlikely to disappear anytime […]

Affordable Housing Takes on Poverty

Without affordable housing there will be a continuous increase in minorities which also leads to a higher poverty rate. Poverty is the state of being extremely poor. Affordable housing helps decrease poverty in many ways than one. Affordable housing fulfills a human’s basic need for shelter as well as provides privacy for families. Those who receive affordable housing assistance and have children, benefit from better nutrition. Affordable housing would reduce poverty and should be available to those who are in […]

The Impacts of Neoliberalism in the Transition to Democracy in Chile

Compared to other developing countries in Latin America, Chile's political and economic development is distinctive. The country is one of the democratic exceptions, owing to its relatively poor and small population at the time of Spanish colonial rule. The indigenous population is also rather small, and the country has a high degree of ethnic and cultural homogeneity (Hillman and D’Agostino 2011, 67-107). However, today's regime wasn't always democratic. Between 1973 and 1990, Chile was under an authoritarian regime led by […]

Living in Poverty and being Rich

  Poverty is such a simple word, but it is so complicated at the same time. The vast majority of individuals will not fully comprehend the real implication of poverty just by reading its literal meaning from the dictionary, but by learning from their surroundings and experiencing hardship itself. Defining poverty can be being poor financially but is also defined as a comfortable way of living as well as spiritually too. What does it mean actually to be poor? Most […]

Poverty and Obesity

It is a known fact that the individual exert influences on the environment and vice versa. However, no man is an Island and as such, these influences reflect through various levels of social and interpersonal relationships. The social environment of the individual include interaction with peers, friend and family members, through such mechanism as role modeling, social support and social norms (Mary, Karen, Ramona, Karen .Annu. Rev. Public Health 2008.Creating Healthy food and Eating Environments, para 2). The physical environment […]

A Problem Child Poverty and Effects on Education

“The impact of poverty on a child’s academic achievement is significant and starts early,” – Jonah Edelman, co-founder and chief executive officer of Stand for Children (Taylor, 2017). According to the U.S. Census Bureau in 2015, around 20 percent of children in the U.S. lived in poverty (Taylor, 2017). Rather than focusing all our time, attention, and resources on rewriting standards and adding higher stakes standardized tests, are we missing a larger looming issue? Studies have shown that student poverty […]

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Essay About Poverty It has existed for many years and still exists today, growing and intensifying. Today poverty remains one of the biggest. In Singer’s essay “The Solution to World poverty,” he suggests the Americans should donate all their money that is not required for necessities to help feed those that are less fortunate. This claim is not true due to the fact that Singer fails to mention how much people struggle and suffer from poverty in America alone, people worked hard for their money; therefore, they deserve to spend their hard-earned money, and how the economy depends on the Americans expenses, so if people don’t spend money on expenses, the economy will crash. Singer begins by comparing Dora, the woman who sells an orphan for a new television set. Singer then introduces Bob and how he chooses to save his expensive Bugatti from a train instead of saving a child’s life, he compares this story to Americans and their lack of donation and aids and how we “too have opportunities to save the lives of children” (2). In his essay, Singer’s aim is to target all Americans, implying that everyone should donate and help. But what he fails to mention is how even in America people also struggle and suffer from poverty. In the journal “Poverty in America: Trends and Explanations,” Hilary W. Hoynes, Marianne E. Page and Ann Huff Stevens state, “The official poverty rate is 12.3 percent, based on the U.S. Census Bureau’s 2017 estimates. That year, an estimated 39.7 million Americans lived in poverty according to the official measure. 18.5 million People reported deep poverty, which means a household income below 50 percent of their 2017 poverty threshold. These individuals represented an estimated 5.7 percent of all Americans and 46.7 percent of those in poverty.” There are so many people in America who are also in need, people that are also suffering. There are without work and without insurance, people whose homes are lose to fires, storms, and bankruptcy. The idea that individuals must help their own first before helping others is reasonable and rational. Though it could be great to help all those in need, American should aid their own first and end poverty in their own country before helping to others for there are times when it is just not possible. 

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Essay On Social Issues

500 words essay on social issues.

Social Issues is an undesirable state which opposes society or a certain part of society. It refers to an unwanted situation that frequently results in problems and continues to harm society . Social issues can cause a lot of problems that can be beyond the control of just one person. Through an essay on social issues, we will learn why they are harmful and what types of social issues we face.

Drawbacks of Social Issues

Social issues have a lot of drawbacks that harms our society. They are situations that have an adverse and damaging result on our society. They arise when the public leaves nature or society from an ideal situation.

If you look closely, you will realize that almost all types of social issues have common origins. In the sense that they all are interconnected somehow. Meaning to say, if one solves the other one is also most likely to resolve.

Social issues have a massive lousy effect on our society and ultimately, it affects all of us. In order to solve some social issues, we need a common approach. No society is free from social issues, almost every one of them has some social issue or the other.

For instance, in India, you will find a lot of social issues which the country is facing. It ranges from the caste system to child labour and gender inequality to religious conflicts. Thus, we are going through a critical time where we all must come together to free our society from undesirable social evils.

Get the huge list of more than 500 Essay Topics and Ideas

Major Social Issues

There are a lot of social issues we are facing right now, some more prominent than the others. First of all, poverty is a worldwide issue. It gives birth to a lot of other social issues which we must try to get away with at the earliest.

Further, countries like India, Nepal, Bangladesh, Sri Lanka, Pakistan and more are facing the issue of the caste system since times unknown. It results in a lot of caste violence and inequality which takes the lives of many on a daily basis.

Moreover, child labour is another major social issue that damages the lives of young children. Similarly, illiteracy also ruins the lives of many by destroying their chances of a bright future.

In developing countries mostly, child marriage still exists and is responsible for ruining many lives. Similarly, dowry is a very serious and common social issue that almost all classes of people partake in.

Another prominent social issue is gender inequality which takes away many opportunities from deserving people. Domestic violence especially against women is a serious social issue we must all fight against.

Other social issues include starvation, child sex abuse, religious conflicts, child trafficking, terrorism , overpopulation, untouchability, communalism and many more. It is high time we end these social issues.

Conclusion of the Essay on Social Issues

A society can successfully end social issues if they become adamant. These social issues act as a barrier to the progress of society. Thus, we must all come together to fight against them and put them to an end for the greater good.

FAQ on Essay on Social Issues

Question 1: What is the meaning of social problem?

Answer 1: A social problem refers to any condition or behaviour which has a negative impact on a large number of people. It is normally recognized as a condition or behaviour that needs to be addressed.

Question 2: What are the effects of social issues?

Answer 2: Social issues affect our society adversely. Most importantly, it disturbs the harmony of society and gives rise to hostility and suspicion. Moreover, it creates large-scale social dissatisfaction, suffering and misery.

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1 (page 1) p. 1 Introduction

• Published: July 2018
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Poverty is a global issue. There are people in every country with a standard of living that is significantly lower than that of others. Nevertheless, the absolute number of people living in poverty has decreased since 1990, especially in the poorest countries in the world. Therefore, there is reason to hope that further poverty reduction can occur. The Introduction outlines the pervasiveness and trends in poverty around the world; the many different causes of poverty that embed themselves in social, political, economic, educational, and technological processes, which affect all of us from birth to death; and considers why poverty matters. Overall, the economy suffers if systematic public policy does not address poverty.

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Shocks and the changing profiles of children living in poverty, the cases of georgia and uganda.

In a world increasingly characterized by fragility and shocks, it is essential to evaluate and understand the changing profiles of children living in poverty, to expand UNICEF´s and partners' awareness and understanding of these changing patterns, and to explore the critical implications in terms of policy and programmatic responses, including through social protection.

Using the example of a global shock, the COVID-19 pandemic, and research conducted by UNICEF Innocenti - Global Office of Research and Foresight, this policy brief examines the changing profiles of children living in poverty in two country contexts, Georgia and Uganda, and assesses the broader policy implications. 

• The poverty profiles of children and their families can change rapidly in diverse ways during and following shocks. The Georgia and Uganda examples show that those who became at least temporarily poor due to the pandemic are increasingly urban, work in unstable employment, and have more children.
• While the focus of this brief is on the impacts of the pandemic, in the past years, other issues have exacerbated the situation of children living in/vulnerable to poverty, including the cost-of-living crisis, increased conflicts, and the climate crisis.
• In light of this, it is important for governments, UNICEF, and partners to quickly identify the changing profiles of children living in poverty and to reach them with the necessary policies and programmes, especially through inclusive social protection systems that have high coverage, are responsive to shocks and provide adequate benefits which are not capped according to the number of children.

Files available for download

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A new report on poverty challenges both Liberals and Conservatives

The conservatives are using the report to rake the trudeau government — but would they follow its advice.

Social Sharing

Conservative Leader Pierre Poilievre understandably seized on a new report card  released last week by  Food Banks Canada  that highlighted the number of Canadians who are living in poverty, struggling to pay their bills and turning to food banks for help.

"Mr. Speaker, after nine years of the NDP-Liberal prime minister's taxes, debt, inflation and promises, Canadians are literally hungry," Poilievre said in the House of Commons on Wednesday.

Prime Minister Justin Trudeau predictably responded by pointing to the support programs his government is rolling out — including funding for child care, dental care and a new school food program — and warned that a Conservative government would only cut such initiatives.

"These are investments that they are opposed to and that we are there to help Canadians with," Trudeau said.

In fact, the findings and recommendations laid out in last week's report present a challenge for both Liberals and Conservatives.

• Nearly 23% of the Canadian population reported food insecurity in 2022
• Homeless people stay sicker for longer and cost the health system more money, data shows
• Basic income recipient says Ontario should fight poverty, not the class action she's part of

As the report notes, poverty in Canada declined markedly between 2015 and 2020 — the share of Canadians living below the poverty line fell from 14.5 per cent to 6.4 per cent. A report released by UNICEF last December found that Canada experienced one of the largest proportional drops in child poverty among developed countries between 2012 and 2021.

Some of that reduction in poverty can be attributed to policies like the Canada Child Benefit, introduced by the Trudeau government in 2016 . The income support programs launched at the outset of the COVID-19 pandemic actually helped to drive poverty in Canada even lower.

But that progress has eroded over the last few years; in 2022, the poverty rate was back up to 9.9 per cent. The report also points out that 23 per cent of Canadians are experiencing " food insecurity " and 44 per cent say they feel worse off than they were last year.

Some of that erosion, the Food Banks report notes, can be traced to the withdrawal of pandemic-era income supports. But the authors also point to four larger factors: rapid population growth without the social infrastructure to support it, a succession of interest rate hikes alongside high inflation, a lack of housing and a slowdown in economic activity accompanied by a slightly higher unemployment rate.

The Trudeau Liberals would say they're taking action in response to those challenges. And the authors of the Food Banks Canada report would not disagree entirely, particularly when it comes to the moves the government has made on housing over the last year.

But they also argue there's more the government could be doing — or should have done already.

Calls for EI reform and an enhanced disability benefit

Seven of the 27 federal policy recommendations reviewed in the report relate to employment insurance reform. All are listed as showing "no progress." In the throne speech delivered in September 2020, the Liberals said it was clear Canada needed an "EI system for the 21st century";  so far they've failed to follow through . At this point, it seems unlikely EI will see comprehensive reform before the next election.

The Food Banks Canada report commends the creation of the new Canada Disability Benefit  but laments, as others have, that it has not received more funding.  Advocates had hoped it would provide about $1,000 per month to recipients , but the benefit is currently set to provide just $200 per month.

The report suggests all federal benefits should be indexed to inflation and that efforts should be made to prevent provinces from clawing back their own programs in response to new federal programs (a potentially relevant issue for the Canada Disability Benefit). It also proposes the creation of a permanent "groceries and essentials benefit" — effectively an enhanced GST tax rebate, which was first proposed last year by a panel of experts convened by the Institute for Research on Public Policy.

(While the Food Banks Canada report generated considerable heat in Ottawa this week, most of the report actually deals with policies and challenges at the provincial level — and while they are often excused from the national discourse, provincial governments continue to exist and possess responsibilities.)

The Conservatives are eager to wave the Food Banks Canada report in the government's face. Would they be willing to implement any of its recommendations?

What would a Conservative government do?

The Liberals can point to recent and proposed federal programs and can cite actions on housing that could go a long way toward alleviating the current problems. But the Food Banks Canada report suggests they could be doing much more. 

The Conservatives tend to criticize the rollout of those social programs; in the case of the school food program, they point out that it's not yet operating. But such criticisms don't tell us what a Conservative government would do with those programs and funding commitments — whether Conservatives would seek to improve such programs or simply eliminate them.

(One of the things the Conservatives have vowed to eliminate is the federal carbon tax — but because that policy includes a rebate,  some low-income households may actually end up worse off if the tax is repealed .)

The Conservatives also seized this week on a report from the parliamentary budget officer that noted homelessness has increased over the last six years, despite new federal funding to reduce it. But while the federal program has failed to meet its goal of reducing chronic homelessness by 50 per cent, it also has provided stable or temporary housing to 23,000 people annually.

The foundation of Poilievre's argument against the Trudeau government is that it has increased federal spending too much — and that by doing so, it has driven up inflation, the price of housing and the cost of living. That argument might now be running up against the fact that inflation continues to decline .

But in the context of this week's debate about poverty, Poilievre's view of federal spending raises at least two questions. Would his spending cuts touch any of the social supports that lower the cost of living for some Canadians? If so, would any benefits derived from lower levels of federal spending — and perhaps lower taxes — somehow offset the loss of those supports?

Conservatives might be comforted by the fact that a strong plurality of Canadians seems inclined to think it's time for a Conservative government. But while Abacus Data recently found a 16-point lead for the Conservatives, it also didn't find a great desire to see social programs rolled back — just 28 per cent of respondents said a Poilievre government definitely or probably should end funding for child care or dental care.

If the Conservatives have a plan to sharply reduce federal spending without touching such programs, they aren't explaining it yet.

For now, the Food Banks Canada report focuses useful political attention on people who badly need it — those facing poverty and income insecurity. That challenges the Liberal government's current response, but it also challenges the Conservatives to explain exactly what they would do differently.

ABOUT THE AUTHOR

Senior writer

Aaron Wherry has covered Parliament Hill since 2007 and has written for Maclean's, the National Post and the Globe and Mail. He is the author of Promise & Peril, a book about Justin Trudeau's years in power.

Social Issues of Families in Poverty Essay

Issue #1: parental stress and mental health, identification of the issue.

Poverty is a state where one lacks adequate resources to meet all essential human needs. Families living in poverty are unable to save some money for investment or for emergency purposes. In essence, families living in poverty spend at least 75% of their income on food, shelter, and clothing. Parental stress and mental health have a causal link with poverty. With the tightened budget, parents of the families living in poverty struggle to make ends meet, and in the course of their struggles, they experience many stresses and depressions.

The toughened struggles lead to irritability of the parenting role as a whole, and this causes the entire family to experience some mental distresses. Financial stresses increase the parents’ emotional distresses, and the parents are unable to respond sensitively to the children’s needs. Parents end up being harsh, inconsistence and non-responsive. With the above-mentioned living conditions, the children’s mental health is affected. The children live in denial; they relate poorly with their peers from elite families, and they perform poorly in schools.

Rational interventions

As evident, the families living in poverty are those from the minority ethnic communities. These families need family strengthening interventions and family support services. It is noteworthy that these services are available; however, they are not readily accessible to most of the families living in poverty. An intervention to make the services readily available and accessible would help in addressing the issue. The service providers can offer the services in venues that the target audience can readily access.

Moreover, time is a very important aspect to the families living in poverty. Since most of the parents spend the entire day doing manual jobs to earn a living, the family support services would work perfectly if scheduled to take place during the evenings. Moreover, most of the families living in poverty are those from minority ethnic groups, and thus, they suffer from inferiority complex.

Therefore, the family-support service providers ought to be resilient. They may receive several setbacks from the target audience, but they ought to find ways to win the trust of the members of the families living in poverty. They should find a way to overcome the prejudice regarding members with mental disabilities and those with difficulties in learning.

The most important lesson that the members of the families living in poverty should learn is the coping strategies. The parents should learn how to respond to their children, and thus improve their relationship with the children despite the toughened economic conditions.

The parents ought to learn several skills; efficient conflict resolution skills, child centered parenting skills, efficient budgetary skills, enhanced emotional functioning skills, and the principles of developing healthy relationships. On the other hand, the children ought to learn how to remain resilient despite the massive poverty related stresses. The family strengthening interventions should help parents and children living in poverty to learn how to develop safe and healthy relationships in spite of the adverse effects of poverty.

Cost and benefits of the proposed interventions

The above named interventions would cost the government quite some large amount of money. Further, the involved service providers will have to work extra hard to make sure they attain their goals. They may have to work for extra hours to convince the parents to adhere to certain aspects.

The service providers may experience several setbacks from their target audience, and thus, they have to be resilient throughout the exercise. However, the benefits associated outweigh the costs. If the parents and the children living in poverty adhere to the teachings, the parental stresses, economic stresses, and emotional stresses that lead to mental health issues would decrease drastically.

Issue #2: Food Insecurity and Hunger

Food is a basic need for human survival; however, the fact that not all families can afford quality and quantity food is very distressing. Food and nutrition determines the health status of an individual. However, families living in poverty do not access the right amount of food to replenish the body’s nutrition requirements. Therefore, members of families living in poverty suffer from malnutrition. Poverty, food insecurity and hunger are somewhat related. Children of families living in poverty are prone to nutrition inadequacy ailments.

In America, there are minority ethnic communities that suffer from food insecurity and hunger. Insecure and non-lucrative jobs are the core causes of extreme poverty levels. American is a first class nation, and one would not expect to find families suffering from adverse poverty, food insecurity, and hunger. However, the tragedy affects millions of American citizens, where, the unnecessary health conditions associated with child hunger burdens the taxpayer.

It is very embarrassing that America has children who suffer from growth and developmental impairments because of food insecurity and hunger. It is also worth noting that food insecurity and hunger leads to deterred emotional, cognitive, and intellectual development, which affects the educational performance of the affected children.

Food insecurity and hunger is a problem that directly or indirectly affects the entire nation. The pediatricians, in collaboration with the ministry of health should take the role of vaccinating all children against childhood hunger medical conditions. In addition to the vaccinations, the pediatricians should treat the children in an effective and efficient manner whenever they have any health condition associated with hunger and malnutrition.

It is noteworthy that food insecurity and hunger is a community problem, and businesses have to come in and show their Social Corporate Responsibility (CSR). Business leaders have the obligation to help in financing and enabling the success of the interventions to eradicate food insecurity and hunger.

Nutrition assistance programs, food assistance programs, programs to invest in the poor, food aid programs, agricultural programs, and programs to prevent humanitarian crisis would help in eradicating food insecurity and hunger. It is the role of the federal government, the non-federal government, and the businesses to fund the above-mentioned programs to eliminate food insecurity and hunger.

Obviously, the government will undergo extra costs in addressing the issue of food insecurity and hunger because not all business owners will be willing to fund the programs. In addition, the pediatricians and the ministry of public health will have to go an extra mile to reach the hidden patients who suffer from malnutrition. However, this worthwhile exercise would greatly help the children. The approach would solve all the problems associated with the physical, emotional, and intellectual development of the children living in poverty.

The children would perform highly in schools, and thus enhance their future life like the children from elite families. In addition to the associated benefits to the members of the families living in poverty, the exercise would save the taxpayers from the burden of financing the hospitalization of the sickened hungry children.

The employers will benefit from reduced absenteeism because of child sickness and the improved employee turnover at the work place. Finally, the government would benefit from the effective and competitive workforce of the healthy citizens.

• The Application of RE-AIM Framework
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• Food Insecurity in the US: The New Face of Hunger
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• Chicago (A-D)
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IvyPanda. (2020, May 11). Social Issues of Families in Poverty. https://ivypanda.com/essays/social-issues-of-families-in-poverty/

"Social Issues of Families in Poverty." IvyPanda , 11 May 2020, ivypanda.com/essays/social-issues-of-families-in-poverty/.

IvyPanda . (2020) 'Social Issues of Families in Poverty'. 11 May.

IvyPanda . 2020. "Social Issues of Families in Poverty." May 11, 2020. https://ivypanda.com/essays/social-issues-of-families-in-poverty/.

1. IvyPanda . "Social Issues of Families in Poverty." May 11, 2020. https://ivypanda.com/essays/social-issues-of-families-in-poverty/.

Bibliography

IvyPanda . "Social Issues of Families in Poverty." May 11, 2020. https://ivypanda.com/essays/social-issues-of-families-in-poverty/.

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An Exploration into Declining Poverty and Vulnerability in India

A recent discussion paper published by the  Niti Aayog evidently claimed that the incidence of poverty in India has sharply declined. Using the Alkire–Foster methodology of calculating the multidimensional poverty index, it suggests that from 2013 to 2023, the proportion of people classified as poor in India declined from 29.2% to 11.3%. This translates into 24.82 crore (or 248 million) people lifted out of poverty. This article is a critical response to the methodology and findings from the discussion paper. 

Estimates of Indian poverty are as much of a political issue as they are  of concern to economists, social scientists, and policymakers. Earlier debates, namely the “great Indian poverty debate” (Deaton and Kozel 2005), were also around the general elections in im peccable timing. However, one thing that remained common in measuring and debating the estimates of poverty across parties and stakeholders concerned was that all measures relied on monthly per capita consumption expenditure (MPCE). They differed on methods of recall, relative prices, inflation, and so on, but agreed on this much. Since India does not have any official household income database, it is through the National Sample Survey Office (NSSO) Consumption Expenditure Surveys (CES) that consumption poverty was measured till 2011–12. Even in the recent attempts (Bhalla et al 2022; Roy and van-der Weide 2022), the studies estimated poverty levels by using consumption data from National Account Statistics and the Centre for Monitoring Indian Economy (CMIE) databases. They also depended on “proxy” measures of per capita consumption expenditure in India. 

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