Poverty, by America
Matthew Desmond, a distinguished professor of sociology at Princeton University and the principal investigator of The Eviction Lab, is known for his extensive research on poverty in America, racial inequality, city life, and housing insecurity. He asserts that America cannot truly embody freedom until it confronts the morally urgent issue of poverty. The American public seems to believe the poor should change their behavior to escape poverty. However, as Matthew fiercely argued, it is economic security that leads to better choices. In his latest book – Poverty, by America – Desmond draws upon historical insights and research to educate readers about the traumatic nature of poverty and the American welfare state as a leaky bucket. He then advocates for readers to adopt the role of poverty abolitionists.
Poverty, by America illustrates how America’s welfare policies have an anti-family design. A case in point is the supplemental security income (SSI), where checks are docked if recipients live with relatives. Readers will learn more about how personal incomes in America have increased by 317 percent over the past fifty years, and yet federal revenue has increased by only 252 percent. Desmond elucidates how personal fortunes have outpaced public funds which eventually choke public investments. By 2021, government spending on all public goods made up just 17.6 percent of GDP. The narrative then delves into how corporations increasingly relying on independent contractors and temps have depressed wages. For instance, tech companies like Google and Apple save an average of $100,000 per job annually by employing temps and contractors.
Poverty, by America extensively investigates the rise of Buy-now-pay-later (BNPL) companies like Afterpay and Klarna, alongside emerging online financial services capitalizing on the financial insecurity of the poor. Matthew’s research unveils staggering figures: an excess of $11 billion in overdraft fees, $1.6 billion in check cashing fees, and up to $9.8 billion in payday loan fees annually. The book addresses how certain votes or decisions disproportionately harm the poor:
Most Americans want the country to build more public housing for low-income families, but they do not want that public housing in their neighborhoods.
The Earned Income Tax Credit and the Housing Choice Voucher Program rescue millions of families from a social ill, but they do nothing to address the root cause.
The Supreme Court’s decision to overturn Roe v. Wade and claw back to the national right to abortion will have devastating consequences for poor women.
When lawmakers have tried to curb pollution and traffic gridlock through congestion pricing, it would hit low-income workers the hardest.
The summary of Poverty, by America ultimately underscores the need for sharing opportunities, where those who benefitted from the nation’s excesses will have to take less so that others may share in the bounty. As Desmond echoes in the book, readers will understand poverty anywhere is a threat to prosperity everywhere.
