30 years ago I had a discussion with a black coworker about the $200+ sneakers that poor black guys purchased while I was always able to find a decent pair for less than $40. He pointed out to me that I had just purchased a 4000 square foot home in the ‘burbs when my family could have done very well with a home half the size and paid much less. He said that those black guys I referenced realized that their chances of being able to afford that “luxury” home that I owned were pretty slim, almost none. Their $200 sneakers were the only luxury they could afford. It made sense to me, as much sense as our white colleagues who financed $50000 bass boats.
What a great example in the middle of your essay: 'You've made it this far; might as well subscribe.' Sunk costs are a powerful influence, poor or not. Now I am not poor, never have been poor, and yet I recognized that when I was young I had many of the poverty maintenance attitudes that you describe. I would have fallen into being poor pretty easily if there had been any stretch of misfortune. It was particularly sad to read about your mother. Not only did she have the effects of her accident to live with, but it sounds as if she had sympathetic, generous impulses, along with others. The picture you've displayed is a grim one, but not an inevitable one. Thanks
I lived in 18 places by the time I was 18. Evicted at least two times I remember. Homeless twice for extended periods. This was in the 50s. I went to the lost and found at the gym every September to get a pair of runners. Etc. Lots of stories I could tell. I have ended up by most standards pretty wealthy. Not a B$ or even close. But pretty solid. You want to know what propelled me out of poverty? Blind luck. A long line of flukes. Don’t discount luck.
Same here. Grew up in the 70s and 80s. I worked hard, but luck played a part. Being healthy and of at least average intelligence is pure luck. I caught a lot of breaks.
Great expose my friend. Appreciate your honesty and sharing. Yes there is a huge difference between the poverty you describe in America and what is experienced in third world countries. Even the homeless in America have access if they want it to nighttime shelters free YNCA memberships, phones, library cards etc etc. What I found really interesting though was how you analyzed which came first the poor decisions or the poverty and I agree that it is a mix, it could be a several small missteps or one huge disaster. And what I find incredible is that it can happen to anyone! No matter who you are it could happen to you for real. There but for the Grace of God am I. I believe however that our Maker knows us so well that He places us perfectly in the time and place that will bring us closest to Him and that whatever actions we take Jesus is always working to get us back on track. This does not mean that He is continually righting all wrongs against us or healing us or giving us opportunities to make more money to bring us out of material poverty. Not at all. I believe that His aim is to bring us out of Spiritual poverty and that to do so He uses whatever means is necessary. You’ve heard the saying All’s fair in love and war. God loves us and is in a war for our souls! Some of the richest people I’ve known are also the poorest
Never been as poor as you, but I can certainly testify about the stress of not having enough. and continually trying to stretch resources to fit the requirements of the moment. You look around and everyone seems to be living while you’re working just to survive. I get it how the windfall works. It’s just such a relief to get things without having to count pennies. You can finally just live a little. You’re not thinking ahead because you’ve learned to focus on what you need right now. I’m still not sure how many people who’ve never been poor can really get this.
I taught middle school for 14 yrs in the worst school on Wake County, NC. This is how generational poverty was explained to me. Kids growing up with a stressed, poor, single mom lack one thing: a mom who has time and energy to read to her kids. Because of not being exposed to narrative stories (Once upon a time…) poor kids are not trained in the mental habit of seeing a progression from story facts to conflict to resolution. Without this mental habit, these kids lack the ability to evaluate the present in light of past events and make a prediction of a likely future outcome. Basically, effect, cause and effect. Thus they make rash unthought out decisions leading to an action which has negative consequences. Then suspension, missed learning, retention, dropout, then school-to-prison pipeline. I’ve seen it happen all too frequently. It is appalling.
Appreciate your writing, Ed. As it happens, I'm also from Pittsburgh (West Mifflin specifically) and can confirm that the only time we ever heard about Northview Heights was when the local news was reporting a homicide.
Great essay. I, too, was stuck in a poverty mindset. Screw that. Right now I’m learning about giving. I’ve known few people, honestly none, who give 10% or more of their earnings and live in lack. In fact, most are wealthy. It does something to a person’s mind. In my experience, it connects a person to the divine and opens up abundant thought. Take that as you will. But great essay. You earned a follow.
One thing I have often wondered is if seasons may have played a role in human advancement. It seems that the more advanced cultures came from areas that had a season of plenty and a season of scarcity. I theorize that perhaps these seasons may have snapped people out of only looking ahead to the next fix, because they had to learn to save up in the season of plenty so they would survive in the season of scarcity. Those who didn't starved to death.
If this is true, I also wonder, does our technological advancement that makes seasons of the year have little impact on people mean we're all likely to develop a poverty mindset?
"Once, on a volunteer trip to Puerto Plata in the Dominican Republic, I did some work in a neighborhood where the houses didn’t even have floors. It was just dirt that would turn into mud during a rainstorm"
I've seen places like that in Florida only twenty years ago. Most of those areas have since been gentrified, so problem solved? Or more likely forced to relocate to places less seen.
A very thoughtful and informative essay. I’m a little skeptical of the 13 point IQ drop, because many social science studies with sexy results don’t replicate. And 13 points is a lot. I’d like to see four or five studies confirming the effect and its magnitude. Remember, things like Stereotype Threat were once the rage, but don’t actually replicate at all. Beware single sources! That not of caution aside, I suspect there really is some effect, though perhaps not quite as great as a 13 point IQ drop.
But that leads to another question: what interventions, if any, do you think could lead to fewer self-defeating decisions?
Your subtitle, It's not what you think, is pretty close to what I thought before reading your piece. It boils down to routine bad decision making on finances. And kids learn the bad behaviors and repeat them as soon as they get ahold of any money. So it's lack of financial education, plus a culture of immediate gratification, plus choosing expensive vices over healthy and pragmatic choices.
But I don't see where you offer solutions to people caught in generational poverty. What to do about it?
Excellent video. Should have a much, much wider viewership.The rewiring of the brain from amygdala dominant to prefrontal cortex dominant is essential to understand and work through. Nice to see you are reading Peter Attia too.
30 years ago I had a discussion with a black coworker about the $200+ sneakers that poor black guys purchased while I was always able to find a decent pair for less than $40. He pointed out to me that I had just purchased a 4000 square foot home in the ‘burbs when my family could have done very well with a home half the size and paid much less. He said that those black guys I referenced realized that their chances of being able to afford that “luxury” home that I owned were pretty slim, almost none. Their $200 sneakers were the only luxury they could afford. It made sense to me, as much sense as our white colleagues who financed $50000 bass boats.
What a great example in the middle of your essay: 'You've made it this far; might as well subscribe.' Sunk costs are a powerful influence, poor or not. Now I am not poor, never have been poor, and yet I recognized that when I was young I had many of the poverty maintenance attitudes that you describe. I would have fallen into being poor pretty easily if there had been any stretch of misfortune. It was particularly sad to read about your mother. Not only did she have the effects of her accident to live with, but it sounds as if she had sympathetic, generous impulses, along with others. The picture you've displayed is a grim one, but not an inevitable one. Thanks
I lived in 18 places by the time I was 18. Evicted at least two times I remember. Homeless twice for extended periods. This was in the 50s. I went to the lost and found at the gym every September to get a pair of runners. Etc. Lots of stories I could tell. I have ended up by most standards pretty wealthy. Not a B$ or even close. But pretty solid. You want to know what propelled me out of poverty? Blind luck. A long line of flukes. Don’t discount luck.
BTW, I did work very hard, took great risks also. But that without luck and I wouldn’t have gotten far.
Same here. Grew up in the 70s and 80s. I worked hard, but luck played a part. Being healthy and of at least average intelligence is pure luck. I caught a lot of breaks.
Understanding it as karmic baggage makes it difficult to distinguish luck from behavioral influences. They are so intertwined.
Great expose my friend. Appreciate your honesty and sharing. Yes there is a huge difference between the poverty you describe in America and what is experienced in third world countries. Even the homeless in America have access if they want it to nighttime shelters free YNCA memberships, phones, library cards etc etc. What I found really interesting though was how you analyzed which came first the poor decisions or the poverty and I agree that it is a mix, it could be a several small missteps or one huge disaster. And what I find incredible is that it can happen to anyone! No matter who you are it could happen to you for real. There but for the Grace of God am I. I believe however that our Maker knows us so well that He places us perfectly in the time and place that will bring us closest to Him and that whatever actions we take Jesus is always working to get us back on track. This does not mean that He is continually righting all wrongs against us or healing us or giving us opportunities to make more money to bring us out of material poverty. Not at all. I believe that His aim is to bring us out of Spiritual poverty and that to do so He uses whatever means is necessary. You’ve heard the saying All’s fair in love and war. God loves us and is in a war for our souls! Some of the richest people I’ve known are also the poorest
Never been as poor as you, but I can certainly testify about the stress of not having enough. and continually trying to stretch resources to fit the requirements of the moment. You look around and everyone seems to be living while you’re working just to survive. I get it how the windfall works. It’s just such a relief to get things without having to count pennies. You can finally just live a little. You’re not thinking ahead because you’ve learned to focus on what you need right now. I’m still not sure how many people who’ve never been poor can really get this.
I taught middle school for 14 yrs in the worst school on Wake County, NC. This is how generational poverty was explained to me. Kids growing up with a stressed, poor, single mom lack one thing: a mom who has time and energy to read to her kids. Because of not being exposed to narrative stories (Once upon a time…) poor kids are not trained in the mental habit of seeing a progression from story facts to conflict to resolution. Without this mental habit, these kids lack the ability to evaluate the present in light of past events and make a prediction of a likely future outcome. Basically, effect, cause and effect. Thus they make rash unthought out decisions leading to an action which has negative consequences. Then suspension, missed learning, retention, dropout, then school-to-prison pipeline. I’ve seen it happen all too frequently. It is appalling.
Indeed sad.
Appreciate your writing, Ed. As it happens, I'm also from Pittsburgh (West Mifflin specifically) and can confirm that the only time we ever heard about Northview Heights was when the local news was reporting a homicide.
Great essay. I, too, was stuck in a poverty mindset. Screw that. Right now I’m learning about giving. I’ve known few people, honestly none, who give 10% or more of their earnings and live in lack. In fact, most are wealthy. It does something to a person’s mind. In my experience, it connects a person to the divine and opens up abundant thought. Take that as you will. But great essay. You earned a follow.
One thing I have often wondered is if seasons may have played a role in human advancement. It seems that the more advanced cultures came from areas that had a season of plenty and a season of scarcity. I theorize that perhaps these seasons may have snapped people out of only looking ahead to the next fix, because they had to learn to save up in the season of plenty so they would survive in the season of scarcity. Those who didn't starved to death.
If this is true, I also wonder, does our technological advancement that makes seasons of the year have little impact on people mean we're all likely to develop a poverty mindset?
"Once, on a volunteer trip to Puerto Plata in the Dominican Republic, I did some work in a neighborhood where the houses didn’t even have floors. It was just dirt that would turn into mud during a rainstorm"
I've seen places like that in Florida only twenty years ago. Most of those areas have since been gentrified, so problem solved? Or more likely forced to relocate to places less seen.
A very thoughtful and informative essay. I’m a little skeptical of the 13 point IQ drop, because many social science studies with sexy results don’t replicate. And 13 points is a lot. I’d like to see four or five studies confirming the effect and its magnitude. Remember, things like Stereotype Threat were once the rage, but don’t actually replicate at all. Beware single sources! That not of caution aside, I suspect there really is some effect, though perhaps not quite as great as a 13 point IQ drop.
But that leads to another question: what interventions, if any, do you think could lead to fewer self-defeating decisions?
Hi Ed,
Your subtitle, It's not what you think, is pretty close to what I thought before reading your piece. It boils down to routine bad decision making on finances. And kids learn the bad behaviors and repeat them as soon as they get ahold of any money. So it's lack of financial education, plus a culture of immediate gratification, plus choosing expensive vices over healthy and pragmatic choices.
But I don't see where you offer solutions to people caught in generational poverty. What to do about it?
In America? Most of the poor stay poor because of lousy parenting and a lack of drive to succeed.
Excellent video. Should have a much, much wider viewership.The rewiring of the brain from amygdala dominant to prefrontal cortex dominant is essential to understand and work through. Nice to see you are reading Peter Attia too.
Thanks for writing this article. Well put.
Great read. My mother demonstrates similar spending habits as your mother did at the end. I also really enjoyed watching your video at the end.