black people and money

Bad Decisions By Poor People: How Much Of It Is Their Fault?

Bad Decisions By Poor People: How Much Of It Is Their Fault?

By Ryan Velez

For those of us with some degree of financial security, some of the decisions poorer people make may be baffling at times. However, if we rewind back to a 2013 article from The Atlantic, data suggests it may not be as simple as being irresponsible, but the actual conditions of poverty that steer people towards bad decisions.

The article is based around a study by Science, saying that poverty, itself, hurts our ability to make decisions about school, finances, and life, imposing a mental burden similar to losing 13 IQ points. A recent comment on Gawker’s Kinja platform illustrates how this works:

“I make a lot of poor financial decisions. None of them matter, in the long term. I will never not be poor, so what does it matter if I don’t pay a thing and a half this week instead of just one thing? It’s not like the sacrifice will result in improved circumstances; the thing holding me back isn’t that I blow five bucks at Wendy’s. It’s that now that I have proven that I am a Poor Person that is all that I am or ever will be. It is not worth it to me to live a bleak life devoid of small pleasures so that one day I can make a single large purchase. I will never have large pleasures to hold on to. There’s a certain pull to live what bits of life you can while there’s money in your pocket, because no matter how responsible you are you will be broke in three days anyway. When you never have enough money it ceases to have meaning. I imagine having a lot of it is the same thing.

Poverty is bleak and cuts off your long-term brain. It’s why you see people with four different baby-daddies instead of one. You grab a bit of connection wherever you can to survive. You have no idea how strong the pull to feel worthwhile is. It’s more basic than food. You go to these people who make you feel lovely for an hour that one time, and that’s all you get. You’re probably not compatible with them for anything long-term, but right this minute they can make you feel powerful and valuable. It does not matter what will happen in a month. Whatever happens in a month is probably going to be just about as indifferent as whatever happened today or last week. None of it matters. We don’t plan long-term because if we do we’ll just get our hearts broken. It’s best not to hope. You just take what you can get as you spot it.”

The basic idea here stems from the mechanisms of poverty and stress. The inherent stress that comes with poverty makes people lose hope and abandon all notions of long-term planning because long-term gains seem impossible and short-term gains are so glaring. Eldar Shafir, the author of the Science study, told The Atlantic Cities’ Emily Badger: “All the data shows it isn’t about poor people, it’s about people who happen to be in poverty. All the data suggests it is not the person, it’s the context they’re inhabiting.”

Source

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