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44 pages 1 hour read

Matthew Desmond

Poverty, by America

Nonfiction | Book | Adult | Published in 2023

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Themes

Private Opulence and Public Squalor

In Chapter 6, “How We Buy Opportunity,” Desmond introduces the phenomena of people relying less on public services as they become wealthier. As a result, they no longer see the value of public services and cut funding from them, depriving those who still need such services. Desmond argues that this situation has created a two-tier system in American society, in which the privileged and the poor operate in different spheres with very different resources and outcomes, further exacerbating issues of poverty and inequality.

One of the signature examples in recent US history is the legacy of “white flight” from the cities to the suburbs, building schools and parks that were no less segregated than those under the Jim Crow South, while banks refused mortgages to Black families who attempted a similar move. The result was a sharp deterioration in public infrastructure within cities such that one class of people had no need for government services while another did not trust them. Desmond argues that class segregation bears some similarities to racial segregation: Poverty continues to disproportionately affect racial minorities in many parts of the country, and the stark divide between the privileged and the impoverished has led to the poor being physically excluded from neighborhoods and schools associated with those of the more privileged classes.

The ethos of American capitalism also prizes those who purportedly succeed through their own efforts alone while castigating those who rely on government services as less capable or worthy. Consequently, the ideal is to make oneself independent of the government and to buy security and social mobility. Desmond asserts that this ideal is not only classist and damaging but also based on many inaccuracies: As Desmond points out, the wealthy actually rely heavily on government aid, albeit in less conspicuous forms than food stamps or public housing. Tax cuts that privilege the wealthy are no less a form of welfare, but they are often perceived as validating the merits of the supposedly productive class rather than as a handout. The wealthy are thus able to hoard their money and resources for themselves while depriving those in the lower classes of assistance whenever possible.

The perceived chasm between private and public convinces the ordinary citizen that they have nothing to do with poverty—that it is entirely up to the government to deal with those who need its services. Since they think of themselves as self-made, or at least receiving what they deserved, they do not see how their selective reliance and then gutting of public services makes it nearly impossible for those in poverty to escape it. It also precludes them from seeing how this artificial division corrodes the whole of social life, and not just for the poor. It trains the middle and upper classes to regard what they have with keen anxiety and to defend it fiercely against any perceived encroachment. Desmond thus argues that the only way forward is to undermine this division between the private sphere of the wealthy and the public sphere of the poor, merging the two together so they become more integrated and more likely to work as a cohesive whole.

The Myths of Scarcity in American Society

Scarcity is a founding principle of modern economics. The very idea of distributing wealth assumes its limited availability. However, Desmond believes that while scarcity is real, in the case of alleviating poverty, it serves mainly as an excuse for inaction rather than as a genuine obstacle. Desmond asserts throughout the text that most Americans have misleading ideas about how many resources are actually available and which sectors of society are the greatest financial burden. 

The most compelling piece of evidence for this contention is the sheer wealth of American society, which extends to many who do not think of themselves as rich. The average American home and car are much bigger than in Western Europe, and contrary to the stereotype of the poor wasting their money on frivolities or vices, it is those in higher income brackets who spend a greater percentage of their income on alcohol and illegal drugs. What is more, Desmond finds that tax avoidance by the wealthy imposes even greater restraints on the federal budget than any welfare or social programs aimed at the poor. “Invisible welfare” programs (See: Index of Terms), such as mortgage subsidies and tax cuts, cost vastly more money than food stamps and public housing. Nevertheless, American political discourse often characterizes the poor as lazy and undeserving at worst or an unwelcome burden at best while presenting government benefits given to the rich as deserved rewards. Desmond argues that these myths thus perpetuate harmful and untrue stereotypes about the poor while allowing inequality and government financial mismanagement to flourish.

Desmond emphasizes that it is simply untrue that there is not enough money to deal with poverty: There is mainly a lack of will. For Desmond, this lack of will stems from fear that any change in the status quo will produce insecurity for those with wealth and power. Americans are wealthier than ever, and yet they report profound economic anxiety and, accordingly, resist efforts beyond topical fixes. This fear in turn reflects a recognition, even an unconscious one, that the wealth people enjoy is in part a consequence of others’ poverty. Desmond argues that the only way forward is to forfeit these myths in favor of radical reforms that could raise every American out of poverty, thus transforming the American mindset from one shaped by fears of scarcity into one filled with optimism and a belief in the country’s wealth and potential.

The Importance of Poverty Abolitionism

Existing policies usually seek to alleviate the conditions of poverty, not eradicate poverty itself. Under such policies, the continuing existence of poverty is taken as a given, a natural consequence of a world in which some have more than others. Desmond insists that American society must instead seek the abolition of poverty—not in the sense of making everyone equally wealthy but in ensuring that a lack of money does not consign someone to a lower tier of existence where hunger, illness, and violence are inescapable.

In the United States, the term “abolitionism” refers to the movement against slavery prior to the Civil War. Desmond sees some parallels between racial segregation and class segregation. First, poverty disproportionately affects Black and brown people, leading to a frequent overlap between issues of poverty and issues of racial discrimination. Second, he points out that the resistance to class integration often echoes the former resistance to racial integration, with wealthy people believing that allowing mixed-class neighborhoods and schools would seriously disadvantage both themselves and their own children. Desmond points out that such fears are false and misleading: Just as racial integration in schools raised outcomes for Black students while not disadvantaging white students, so too will better social integration between rich and poor improve the poor’s prospects while leaving plenty of privilege for the upper classes.

None of the specific measures that Desmond recommends for alleviating poverty, such as reviving unions, investing in public housing, and even outlawing class segregation, will be sufficient to abolish poverty in and of themselves. The structural shift must also be accompanied by a shift in attitudes. Desmond believes that the poor must become visible and present and that the realization of their dreams must be recognized as just as valid as the realization of the wealthy’s dreams. Poverty is a parallel world that endures as long as those outside of it feel no sense of responsibility to those within it. In arguing for the abolition of poverty, Desmond insists that poverty must finally be acknowledged as a result of structures and systems that can and should change, instead of being misrepresented as a personal failing.  

In sum, approaching the issue of poverty as one of structures and political will makes bold reforms and a change in perspective possible. Abolishing poverty will not ensure wealth and privilege for all Americans, but it can ensure that class differences no longer determine the entire course of someone’s life or deprive them of basic human dignity.

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