Defining Poverty: More Than Just Money

Introduction

*This post is the first in an ongoing series, “Moving the Needle on Poverty” that examines the nature of and potential solutions to poverty in the urban context of Greater Savannah, GA.

Poverty is an increasingly serious problem, both at home and abroad. Here in Savannah, the poverty rate continues to grow. According to data from the Southern Rural Development Center, the local poverty rate rose from 14.4% in 2000 to 15.6% in 2009, which was greater that the national average of 14.3%. That means that more than 1 in 7 Savannahians is living in poverty. Studies show that the consequences of poverty are far reaching. Poverty negatively effects public health outcomes, crime rates, educational outcomes, and an even an individuals very ability to participate in society. Furthermore, higher morbidity and mortality rates, poorer mental health and cognitive outcomes, and reduced life chances across a wide range of life domains have been found in children exposed to family poverty (Najman, et al., 2018). To develop effective solutions for poverty alleviation and avoid these negative outcomes, we must learn to widen our view of what poverty represents.

Before you can solve the problem, you have to be able to define the problem. Dr. Ruby Payne (2013), provides a working definition of poverty: “the extent to which an individual does without resources” (p.16) (emphasis added). The emphasis on the word resources is important because, for many, the word poverty simply indicates a lack of money. While money is one of the resources that those experiencing poverty are certainly doing without, poverty is not a purely financial problem. According to Payne, one’s ability to move out of poverty is more dependent on these other resources (emotional, mental, spiritual, physical, support systems, relationships, etc.) than it is on financial resources. Improving the conditions of those in poverty requires a comprehensive approach that addresses the deficit in each one of these areas.

Another important distinction to make as we define poverty is between generational poverty and situational poverty. Generational poverty occurs in families where at least two generations have been born into poverty, while situational poverty is typically a temporary condition preceded by a sudden crisis or loss, including environmental disasters, divorce, or severe health problems (Jensen, 2009). For our purposes, we will be dealing primarily with generational poverty, as those experiencing generational poverty are typically not equipped with the tools to move out of their situations.

A more broad understanding of the definition of poverty is required if we are to work towards a solution. Those who see poverty as a purely financial problem tend to think that simply increasing the financial resources of those who are experiencing poverty will solve the problem. This myopic view can create two major problems. First, the situation of those who are experiencing poverty fails to improve and, second, those who are contributing financially often become frustrated by this lack of improvement, contributing to an even greater cultural divide and further compounding the problem.

Those families and individuals who are experiencing poverty, and those who work closely with them, know something that those who see poverty as a lack of financial resources don’t see; that poverty is really about a lack of power to make choices.

Poverty means less choices — People experiencing poverty are often put in positions where their choices are limited by their situations and the choices available to them often further compound their poverty (Carvalho, Meier, & Wang, 2016). One simple illustration is the purchase of a pair of work boots. This simple, but necessary, article of clothing might seem insignificant to those not experiencing poverty but it vital to getting and keeping a job for some, as steal toed work boots are often a required for many unskilled labor jobs. A good pair of work boots will last for years but will cost around $200 while a cheaper alternative can be had for as low as $50 a pair but will only last maybe 6 months. The end result for those experiencing poverty is that their choice is limited to the cheaper pair which in the long term will end up costing them more money as they must replace them much more often than if they could purchase the $200 pair.

Another way choices are limited for those experiencing poverty would be in where they are able to purchase these boots. For some, they can simply drive to the nearest shoe store and make the purchase or, if the boots are not available in store, they can purchase them from an online retailer. Many people experiencing poverty don’t have access to transportation to get them to the store or access to banking products that would allow them to make a purchase online.

There are many more ways in which poverty creates a deficit of choice in the lives of those experiencing it but the end result is that this deficit creates a lack of power to participate in society.

References

Carvalho, L. S., Meier, S., & Wang, S. W. (2016). Poverty and Economic Decision-Making: Evidence from Changes in Financial Resources at Payday. American Economic Review, 106(2), 260–284. doi:10.1257/aer.20140481

Jensen, E. (2009). Teaching with poverty in mind: What being poor does to kids brains and what schools can do about it. Alexandria, VA: ASCD.

Najman, J. M., Bor, W., Ahmadabadi, Z., Williams, G. M., Alati, R., Mamun, A. A., . . . Clavarino, A. M. (2018). The inter- and intra- generational transmission of family poverty and hardship (adversity): A prospective 30 year study. Plos One, 13(1). doi:10.1371/journal.pone.0190504

Payne, R. K. (2013). A framework for understanding poverty: A cognitive approach. Highlands, TX: Aha! Process.