By Patricia Jones, Alliance Community Task Force: Creating Opportunity
"Poverty Isn't a Lack of Character" is a TED Talk that was filmed in 2017. Rutger Bregman talks about how living in poverty is not "Something is wrong with them," as many politicians would have us believe. Instead, it is having a scarcity mindset. He explains why this causes the poor to make so many poor decisions.
Bregman refers to a study done in the 1960's in India. Sugar cane farmers receive 60% of their annual income after harvest, which means they are relatively poor for part of the year, and rich for the other part. The researchers gave these farmers IQ tests before and after harvest. They consistently scored about 14 IQ points lower before harvest, when they were poor.
This research has been recreated with other groups with the same results. WebMD says people preoccupied with scarcity scored 13 to 14 points lower than those who did not have a scarcity mentality. The site goes on to remind us that 13 or 14 points is the difference between outstanding and average; between average and "borderline-deficient."
The scarcity mindset can result in short-sighted choices, a lack of confidence, and a focus on immediate needs over long-term goals. A scarcity mindset is a way of thinking that focuses on something you don’t have enough of. You become so obsessed with that lack that you have tunnel vision and cannot deal with anything else. You neglect other obligations, other needs. And you make poor decisions.
When we think of poverty, we tend to think of financial poverty, not having enough money for the things we need. But poverty training teaches us that poverty is a lack of any resource we need. It might also be a lack of time, not having necessary language skills, poor emotional control, poor health, no positive relationships with friends or role models, not understanding hidden rules, or lacking other kinds of social capital.
Loneliness is a social form of scarcity. A child moving to a new school is in poverty until s/he develops new friendships and learns the hidden rules of that school. Fitting into the new environment is taking most of the child's mental energy. During this time of adjustment there will be struggles, unhappiness, low grades, and lots of bad choices. This isn't true just for children, is it?
What if time is our scarce resource? We stress and ignore other tasks, things, and people around us. We get sloppy as we rush to finish something. We procrastinate and make excuses. These aren't the greatest decisions, are they?
What causes a scarcity mindset? Think about life-changing events like a major illness, having a baby, losing a job, a natural disaster, getting a divorce. Every one of those refocuses your mind and affects your decisions.
Sometimes a scarcity mindset is inherited, or based on events from childhood. Parents may have stressed about money, and their children pick up on that. They may be more competitive, where they never think they have enough. (Keeping up with the Joneses?) Educators often talk about ACEs, Adverse Childhood Experiences. These abuses or traumas create scarcity, because they cause a focus on something in the past.
Sometimes, a scarcity mindset can come from perceived scarcity, even if it’s not an actual scarcity. Societal influence, such as social media, public figures, and people around you, can affect your perceptions.
Scarcity affects decision making. It is hard to reason logically and solve problems. The ability to plan and complete a project is limited because the focus is somewhere else.
Quoting Rutger Bregman of the TED Talk, "The poor are making dumb decisions, not because they are dumb, but because they are living in a context in which anyone would make dumb decisions."