Poverty is not a straightforward problem with a simple solution. Poverty is complex and goes beyond a simple lack of money. It seeps into all aspects of life, which is why it is so difficult to get out of and break the cycle of generational poverty.
What Causes Poverty in America?
We tend to think of America as a country of plenty. Many people try to immigrate here to achieve the American dream and find financial stability. Despite this, America is not immune to poverty, and many residents throughout the country struggle to make ends meet and have their basic needs met. The problem of poverty is made worse by the fact that there are many myths and stereotypes surrounding poverty. People don’t necessarily understand the actual causes of poverty and why these barriers are so difficult to overcome.
As of 2019, 34 million Americans were living in poverty. That is 10.5% of the total population and the COVID-19 pandemic has more than likely led to more people living in poverty. It is easy to assume that poverty is the result of personal failure or that people simply don’t want to work or try to do better. These unfortunate myths only help to perpetuate the problem.
In America, the three main causes of poverty are lack of jobs, education, and healthcare. Families who have a head of household who is unemployed experience poverty at a rate of 26.4%. People without a high school education have a poverty rate of 23.7%. Poor health is one major factor that can contribute to people not being able to work or attend school and lead to healthcare bills that are simply insurmountable.
Structural Causes of Poverty
The truth is that poverty is not the result of poor personal choices and practices. There are structural barriers in place that make it more difficult, especially for certain demographics, to support themselves and their families. These structural barriers can be interrelated and make it more difficult for people to have reasonable and affordable access to housing, health care, child care, transportation, education, and high-quality jobs.
Minorities, including women, people of color, those in the LGBTQ community, face discrimination and pay gaps that make it difficult to enjoy the same access to essential resources and opportunities that can lead to upward mobility.
Lack of Jobs Causes Poverty
As might be expected, unemployment and underemployment are some of the main causes of poverty. This can also be affected by geographical location. If you live in an area that is experiencing economic challenges and there isn’t a robust business structure that creates jobs and a demand for trained employees, then unemployment can be a problem. In addition, there may be jobs nearby, but without access to transportation, it can be nearly impossible to get to work and fill these positions. Residents can even be a part of the working poor and simply not make enough money to cover needs.
In some parts of the country, spikes in employment demand are seasonal. Retailers may need additional help during the holiday season and agricultural businesses may need more laborers during the harvest season. Workers end up being part of a boom or bust economy where they are still placed at the bottom of the economic distribution level even in the best of times. These workers are especially productive during certain periods of the year and have to try and stretch those funds once work dries up again. This type of financial situation makes it difficult to weather unexpected costs, such as a medical emergency.
Improving job opportunities and thereby reducing poverty in certain areas and cities can be a complex challenge. It starts with cities adopting policies that provide access to affordable housing, public transportation, and job training. City officials also play a vital role in attracting businesses that are interested in supporting the community and making a positive impact. If a company moves into the city with a plan to only hire top-tier employees, then this only creates a greater divide between the rich and poor. Businesses need to address the needs of the entire community as they look at the impact their presence will have.
City officials, business owners, and community advocates need to work together to make sure that any growth is controlled in a way that provides adequate infrastructure and resources to everyone in the area. Bringing jobs into the city won’t be enough if employees can’t afford to live where they work. Affordable housing is a major consideration that often goes hand-in-hand with employment opportunities.
As cities decide on how funds will be allocated and which businesses will be welcomed into the area, they need to make sure that people who will be affected by these decisions have a place at the table. Inequity and poverty will continue as long as the rich and powerful are able to dictate decisions that ultimately affect those struggling with basic needs. People being affected by poverty should be heard and taken into consideration.
Poverty and Education
Education is one of the main factors that can help to break the cycle of poverty. However, living in poverty can also make it more difficult to complete high school and go on to pursue higher education. Children living in extreme poverty may have poor attendance and lack the time management and study skills that others in more stable living situations tend to develop. In addition, low-income students are five more times likely to not finish high school. Oftentimes, they leave school to try to enter the job force and help support their families. While this may seem like a practical decision at the time, it only makes getting out of poverty more difficult.
To help make sure that children stay in school and receive a strong scholarly foundation that will continue to serve them well into adulthood, communities need to invest in the school system. That means providing funds and making sure that any necessary academic intervention is made early on so that children don’t slip through the cracks.
Poverty and Health
Finally, poor health is an unfortunate cause of poverty. Many people below the poverty line are unemployed due to disabilities that prevent them from working. This can cripple the well-being of entire families. It doesn’t help that healthcare is expensive and all people don’t have the same access to the same quality of care. Without health insurance, people are forced to do without, rely on free resources, or wrack up medical bills that they simply cannot pay. These are not easy choices.
Poor health among children can affect their education and prevent them from learning and meeting their full potential. Without proper nutrition, regular checkups, and other healthcare, children can get caught up in a vicious cycle that just breeds more poverty.
For anyone who is struggling with poverty, for whatever reason, the community needs to put safety nets in place. With the right support, people can recover from setbacks and avoid falling further into poverty. Ultimately, individuals have to care about what is going on in their community and make an effort to make sure everyone has access to the tools and resources they need. Lifting Up STL is trying to do our part to stop poverty and so can you.
