Professional Documents
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budget” used by Orshansky (1). The economy food plan was actu- firearm-related death for every 1446 people in poverty). The popu-
ally only meant for emergencies and on a temporary basis. In addi- lation in poverty is 17× greater than the number of victims of violent
tion, in the late 1960s, the government began updating the OPM crime, almost 10× the number of unemployed, and about 5.5× the
thresholds using the consumer price index and thus severed the number of undocumented immigrants. The number of COVID in-
link to the food budget. Katz [(1), p. 116] quotes Orshansky as fections in the first year and the number lacking health insurance
writing, “This meant, of course, that the food-income relationship were only about half as many as in poverty.
which was the basis for the original poverty measure no longer was On balance, some of these are events (e.g., evictions and mortal-
the current rationale.” Moreover, obviously unlike the mid-1950s, ity), while poverty and others (e.g., the incarcerated and uninsured)
food is certainly far less than one-third of household expenses might be statuses, and some are both (e.g., crime is an event, but
today. As a result, the OPM effectively ignores the increased costs being a victim of crime is a status). People cycle in and out of
of crucial needs like childcare and health care, which were less es- poverty. Analyses with the Panel Study of Income Dynamics
sential or much cheaper when the OPM was created. (PSID) and Cross-National Equivalent File reveal that about 45 to
Following the overwhelming majority of cross-national poverty 46% of people in poverty are in their very first year of being poor
research (7, 9–11), I use a relative measure. A relative measure (and another 19 to 25% have only been poor for 2 to 3 years) (26,
defines poverty as a shortage of resources relative to needs 27). Thus, nearly half of those with the status of poverty experience
defined by the prevailing standards of a time and place. Both the event of falling into poverty in a year. An even larger population
cross-national and U.S.-specific research show that relative mea- experiences poverty at least one point in their lives (28). In recent
sures better predict well-being, health, and life chances; are more years, about 61% of Americans have experienced at least 1 year in
valid for leading conceptualizations of poverty; are more reliable poverty during their lives (27). Thus, regardless of whether it is a
for overtime and cross-place comparisons; and are justified status or event, poverty affects a huge population.
PREVAILING APPROACHES TO THE INDIVIDUAL POOR documenting welfare disincentives that lead to problematic behav-
Unfortunately, American poverty research has not traditionally ior (44).
aimed to explain the question of the systemically high poverty in According to this literature, poverty also has feedback effects,
the United States. Rather, the prevailing approaches have focused which reproduce poverty. Researchers argue that poverty imposes
on the individual poor. This partly reflects America’s uniquely a cognitive burden, present bias, and stress, which reduces band-
strong individualistic ideology (1, 4, 10, 39). This section critically width, which then purportedly encourages counterproductive
reviews three of the prevailing approaches in American poverty re- poverty-increasing behavior (45–47). For instance, Shah and col-
search: (i) behavioral explanations that imply “fixing the poor,” (ii) leagues (48) use laboratory experiments to simulate scarcity in
emotive compassion narratives that imply “dramatizing the poor,” games like Wheel of Fortune, Family Feud, and Angry Birds. On
and (iii) cultural explanations that imply both dramatizing and the basis of such experiments, they claim that this explains why
fixing the poor. (p. 682) “The poor often behave in ways that reinforce poverty.”
Public commentary also routinely advances behavioral explana-
Fixing the poor tions. Sawhill’s (49) “success sequence” is based on her contention
First, behavioral explanations aim to “fix the poor.” This approach that “Those who graduate from high school, wait until marriage to
posits counterproductive behavior as the key mechanism causing have children, limit the size of their families and work full-time will
individuals to be poor. These behaviors are risks or demographic not be poor.” Academics often offer such behavioralist public com-
and labor market individual characteristics that are more mentary as well (2). The American Enterprise Institute and Brook-
common among the poor. The four major risks are joblessness, ings Institution convened two “bi-partisan” “consensus groups” of
low education, young headship, and single motherhood (31). Ac- eminent academics on poverty (50, 51). Both concentrate over-
cording to behavioralists, the poor are poor because they exhibit a whelmingly on risks and behavior. The 2015 plan emphasizes mar-
greater “prevalence” (i.e., share of the population) of such risks (40– riage, delayed parenthood, employment, and education. The plan’s
42). For behavioralists, the principal anti-poverty strategy is to first recommendation is to “promote a new cultural norm surround-
reduce prevalences of risks (43). ing parenthood and marriage.” The 2022 version similarly advo-
In this view, behavior is driven by choices/incentives, culture, cates, “marriage is the best path to favorable outcomes…marriage
and traits: Almost the only causal pathway from choices, culture, offers the most reliable way” (p. 22).
and traits to poverty is through behavior. As a result, many concen- Despite being prominent, behavioral explanations cannot
trate on altering the choices, cultures, and traits of poor individuals. explain the systemically high U.S. poverty. This is demonstrable
This presumes that disproportionately poor groups have dispropor- using Brady and colleagues’ (31) “prevalences and penalties” (PP)
tionately problematic or even pathological behavior (35). In turn, framework, which describes and assesses the risks of poverty (9,
behavioralists devote considerable effort to scrutinizing and 52, 53). Prevalences are the share of the population with a given
risk, which has been the focus of behavioralists. Penalties are the
risk. The United States is also below average in the two paramount
risks: joblessness and low education. Furthermore, despite vast
cross-national variation in poverty, there is little cross-national var-
iation in prevalences as all rich democracies have similar prevalenc-
es (31). As a result, if the United States had cross-national median
prevalences for young headship, low education, joblessness, or all
four major risks, U.S. poverty would increase, not decline. If prev-
alences could explain U.S. poverty, then poverty should have de-
clined as a result of the marked historic decline of the risks of low
education, joblessness, and young headship (31). However, poverty
has been stable at a high level since the 1970s. U.S. poverty would be
higher if the U.S. returned to historic prevalences of young head-
ship, low education, joblessness, or all four risks.
Behavioralists routinely ask why the poor fail to get married, why
they do not complete their education, and why they do not work (or
why they do not open bank accounts or why they fail to sign up for
welfare programs) (42, 47, 49). The reality is that the United States
actually has cross-nationally below average prevalences and those
prevalences have declined considerably over time. Thus, U.S. resi-
dents tend to make fewer such choices and engage in fewer such
because of its systemically high poverty and an outlier because of its evocative titles like On the Run, $2.00 A Day, Living the Drama,
highest penalties. Generalizing about the relationship between risks American Dream, and Gang Leader for a Day.
and poverty based on an outlier suffers from selection biases just Desmond and Western (69) argue that this “new direction” em-
like any sample selection bias (65). The researcher does not know phasizes “poverty is morally urgent…an affront to dignity.”
what conditions in the outlier U.S. setting are interacting with the Desmond and Western even go so far as to say, “Esteeming
risk to augment the penalty (66, 67). The researcher does not know dignity encourages a humanizing social analysis, where researchers
how much poverty is due to the risk itself or highly contingent in- are sensitized to the capacity for love, creativity, and imagination in
teractions between the risk and the setting (6). Ultimately, any im- their subjects. The principle of human dignity also shifts the poverty
pression about the relationship between risks and poverty based debate away from income redistribution” (emphasis added). This is
solely on the United States is biased because the United States is noteworthy given that political explanations discussed below tend
an outlier. This problem is exacerbated if one only studies poor to emphasize redistribution as necessary and perhaps more salient
neighborhoods or very poor groups in the United States (6). than almost any other cause of variation in poverty (76).
Third, behavioralists mostly focus on prevalences and neglect Compared to behavioralists, this approach has clear advantages.
the more salient penalties. However, there is far more variation in It reveals the exceptionally constrained and near impossible
penalties than prevalences (31). The United States does not stand “choices” that poor people have to make, which humanizes the
out for having high prevalences but does stand out for having the poor. Such narratives of the poor’s actual daily lives (70) are
highest penalties among rich democracies. Furthermore, reducing surely more construct valid than laboratory experiments using
penalties would reduce poverty more than reducing prevalences video games (48) or textbook assumptions about welfare disincen-
(31). Penalties, therefore, provide a far better explanation of Amer- tives. This approach also implies an intuitive theory about causes
ica’s systemically high poverty than prevalences. All of this supports and solutions. By humanizing and dignifying the poor, this litera-
the political explanations below. ture uses narratives to get readers to become sympathetic. Such sym-
pathy is then expected to set the agenda for anti-poverty policies
Dramatizing the poor (e.g., shifting politicians away from punitiveness). This implies
A second prevailing approach aims to elicit emotion and compas- that a lack of humanization is a critical cause of why the United
sion through humanizing narratives built on ethnography and in- States has systematically high poverty. Below, I revisit whether
tensive interviews (68–70). With granular detail of the daily this is a convincing political theory of poverty.
struggles of the poor (70, 71), this approach offers vivid, often No matter the intent to humanize, this approach still ends up
shocking, descriptions of poor individuals (72–74). The emphasis focused on why certain dramatized individuals are poor—their
is often on the desperation and suffering of extremely poor individ- life history, unfortunate circumstances, or counterproductive be-
uals stuck in impossible situations, often in places of concentrated havior that caused such dire straits—rather than why the United
extreme poverty (68, 75). Books in this approach routinely have States has systemically high poverty. To paraphrase Matt Bruenig,
spend nearly their entire welfare benefits on a lobster dinner. This someone with at least a high school degree than someone without
approach may lean on the theory that humanizing narratives will (58.2% versus 24.8%). Ethno-racial minority adolescents are
evoke compassion for such groups. However, mischaracterizing perhaps the most dramatized poor. However, Black and Latino ad-
the population in poverty and overrepresenting exotic subgroups olescents amount to only 3 and 5.5% of people in poverty. Black and
also fuels unflattering stereotypes about the poor. Such unflattering Latino adolescents in the highly studied inner cities are merely 1.4
misrepresentations are likely to backfire and have even larger and 2.3% of people in poverty. Far fewer are in poor neighborhoods.
adverse political consequences (2, 77, 78). People with multiple risks (e.g., low educated, jobless, and young
Figure 7 reveals that such stereotypical groups are actually a small single mothers) are frequent in this literature. However, there are
share of the population in poverty. Among those in poverty, the more than four times as many poor people with zero or one risk
share in single mother households (18.5%) is much smaller than versus those who have 2+ risks (80.3% versus 19.7%). Last, a
the share in coupled working-aged households (29.4%). Only crude estimate is that about 4% of the population in poverty is
about 2.1% of poor people are in young single mother households. homeless. This estimate uses the national point in time count for
Among those in poverty, about three times more are in employed 2019 and follows Evans and colleagues [(79), p. 924], “the point-
than jobless households (57.2% versus 19%). There are also more in-time estimate understates annual exposure by a factor of
than two times as many poor people in households led by almost four.”
The reality is that people in poverty look similar to the United
States as a whole. If one were to construct a composite “typical” poor
person in the United States based on the most common populations
in multiple categories, it would be a white, 35- to 45-year-old
woman, with a high school education, in a coupled and employed
reducing poverty. Unfortunately, this fuels a false impression of fu- against rival theories. Scholars rarely showed evidence that culture
tility that social policies do not reduce poverty, what can be called mattered net of other causes or how the magnitude of any cultural
the fallacy of intractability. By accurately incorporating social poli- effects compared against other causes. Rather than adolescent Black
cies, we more accurately characterize the population in poverty and males lacking soft skills (87), ample evidence shows extensive racial
accurately reveal that social policies are effective. discrimination by employers. Rather than the poor being ignorant
Edin and Shaefer’s (75) celebrated $2.00 A Day measures about college pathways (71), highly segregated and lower quality
extreme poverty at the remarkably low threshold of $730 a year. schools and toxic environments likely undermine educational at-
Edin and Shaefer claim that there was a marked growth in $2/day tainment (36). It is possible that culture does not matter net of
poverty; the growth was exacerbated by the 1996 welfare reform; the such factors, which plausibly have even larger effects.
growth was especially worse among single mothers with children; Moreover, culturalists never really even attempted to explain sys-
and there are notably high numbers with less than $2 per day. temically high poverty. By narrowly focusing on some selectively
The problem is that they measure household income as only cash chosen specific poor group, cultural explanations notoriously rou-
income and omit some welfare transfers as well as taxes and tax tinely neglected the political causes discussed below. Indeed, cultur-
credits. In particular, they omit SNAP, which is actually a critically al explanations habitually omitted the historical and institutional
effective social policy for extreme poverty. By contrast, Brady and contexts underlying systemically high poverty. For the most part
Parolin (11) set a more reasonable threshold and measure income and for many, such problems and critiques were persuasive (1, 2,
comprehensively. They show that Edin and Shaefer mischaracterize 4, 6, 83, 84).
the rates of and trends and population in extreme poverty. Most Hence, it was surprising that, in 2010, the New York Times re-
people in extreme poverty are childless adults, and SNAP substan- ported, “‘Culture of Poverty’ Makes a Comeback” (88). Highly pub-
tially reduces extreme poverty for single mothers with children. licized Harvard University sociologists were advocating for cultural
and conducts “surgical fieldwork” (p. 14) in three mainly poor Black political explanations provide a far better account for why the
neighborhoods in Boston. While discounting that his race, sex, and United States has systemically high poverty. Political explanations
class constrain interviewing or interpretation (pp. 16, 20, 265), see individuals as poor largely because of that systemically
Harding (p. xii) dismisses political explanations that imply high poverty.
“victims of structural forces beyond their control” and derides im- While the three prior approaches have traditionally prevailed (3,
plying “individuals floating like feathers buffeted by winds pro- 4), political explanations have risen in prominence in recent
duced by economic and social forces beyond their control.” decades. Before roughly 2000, there were few studies that would
Harding argues “model shifting” between and “simultaneity” of be explicitly labeled as political explanations. Partly, this rise oc-
good and bad, and “dilution” of good cultural scripts, frames, and curred because of marked advances in cross-national income data
schemas cause boys to not use condoms and resist commitment to and especially the LIS database (7). Such data enabled scrutiny of
girls, engage in violence, and “produce ignorance about how to suc- taxes and transfers as well as variations in policies and institutions.
cessfully navigate educational institutions” (p. 226). While disavow- If a researcher only ever studies one political context, then the ho-
ing homogenous values and norms, the argument ends up in the rizons of explanation are constrained because of selection bias. If
same place as older cultural arguments. “Ghetto-specific cultural one only studies the United States, without comparison to other
models” (pp. 6, 243), “negative role models” (pp. 67, 241), and countries, then this leads to a sample selection bias where one
“level expectations” (pp. 57, 61). The text mainly concentrates on cannot answer why the United States has comparatively high
mean differences in culture/behavior of disadvantaged Black/ poverty. To paraphrase Lipset (93), poverty scholars who only
Latino boys/neighborhoods versus unobserved non-disadvantaged know one country, know no country.
boys and neighborhoods. In poor neighborhoods, “cross-cohort so- Political explanations recognize that poverty normally occurs in
cialization” (p. 72) exposes boys to “ways of thinking about prob- a context of sufficient or even abundant resources rather than scar-
Within political explanations, there have been at least four con- Figure 8 also overlays markers for the actual U.S. minimum,
crete themes. I now elaborate on each. median, and maximum poverty rates. This shows that the high
actual poverty rates of the United States fall almost exactly into
The essential role of social policy generosity line with the model’s predicted poverty rates. The United States
The strongest and most robust generalization to emerge from recent has systemically high poverty because it has low social welfare
decades of political research on poverty is that social policy gener- spending. The United States is always in the upper left part of the
osity is a requirement for low poverty. At the risk of hyperbole, there figure. This confirms the United States is a perennial outlier, both in
has never been a country in the modern history of capitalist democ- terms of high poverty and low social welfare spending. This demon-
racies that accomplished sustainably low poverty without a large strates that one will misunderstand poverty if one only studies the
welfare state. Consistently, across a variety of samples of countries, United States.
years, and states, there is a clear, strong, and robust negative rela-
tionship between the welfare state and poverty (10, 29, 92, 100– Political choices to penalize risks
111). The powerful role of social policy was made very clear by Behavioralists and culturalists contend that individual counterpro-
how U.S. poverty declined during COVID. Because the U.S. govern- ductive choices explain why some individuals are poor and other
ment extended unemployment insurance, expanded the CTC, and individuals are not. By contrast, political explanations contend
provided stimulus and relief payments, poverty was considerably that states make political choices about which risks will be protected
lower (14). and which will not. By “political choices,” I mean a realistically
Generous social policies reduce poverty regardless of whether nuanced “decision” by a polity to act or not. Sometimes, politicians
one measures social policy generosity as formally legislated social do deliberate in proverbial smoke-filled rooms for policy that
rights (112, 113), as the amount of welfare transfers actually received worsens poverty (e.g., a few Senators’ choice to not continue Pres-
reinforces how unusual the U.S. case is and how studying only the union membership and state-level unionization and poverty. Both
United States biases conclusions about poverty. union membership and state unionization have statistically and sub-
stantively significant negative relationships with relative and an-
Power resources of collective political actors chored working and working-aged poverty. Household union
Underlying and causing generous social policies, collective political membership and state unionization significantly negatively interact,
actors mobilize less advantaged classes into “power resources” (10, augmenting the poverty-reducing effects of each. Higher state
103, 108, 129–131). According to power resource theory, labor unionization also spills over to reduce poverty among nonunion
unions and leftist parties unite workers and voters around shared households. These powerful effects of unions are notable because,
interests and ideology to push for generous social policies (37, as VanHeuvelen and Brady write, “American poverty research
132, 133). The mobilization of the less advantaged is pivotal largely neglects labor unions.” Compared to the enormous attention
because the default distribution of political power in a capitalist de- on eviction for example, I conjecture that low unionization is a more
mocracy favors elites and business (134). Hence, it is essential for salient cause of poverty.
the working class and poor to bond together and attract some of The focus on political actors inverts the traditional emphasis.
the middle class to gain any real political power. Power resource Rather than yet another study of the choices of the individual
theory thus provides a theory of the income distribution, with the poor, the field needs more study of the choices of political actors
welfare state as a principal mechanism and collective political actors who have power over the poor (10, 131, 143–146). Rather than
as the underlying fundamental cause (10, 108, 129). the marked and evocative experiences or culture of exaggerated un-
Poverty is lower where and when Left parties have controlled representative poor groups, the field needs more study of the
government, unionization is higher, and women are a greater routine and banal ways in which powerful actors exclude those in
share of parliaments (10). Countries with higher unionization poverty. Whether collective political organizations, individual
have significantly lower working poverty and lower poverty policy-makers, or street-level bureaucrats, the poverty literature
overall (133, 135–140). For example, Pineda-Hernández and col- needs more attention to how political actors drive the amount of
leagues (141) analyze 24 developed countries from 1990 to 2015. poverty in society (2, 10, 95). For example, the poverty governance
They demonstrate that centralized collective bargaining systems, literature demonstrates how health care workers (146), police (144,
greater bargaining coverage, and higher unionization significantly 147), welfare case workers (78, 120), and local community leaders
reduce working-age poverty after taxes and transfers. They conclude (145) regulate the poor (134).
that this is mostly because of the political strength of these power A focus on political actors also invites skepticism about the po-
resources in promoting more generous social policies. litical theory implicit in dramatizing the poor. Even if humanization
This pattern holds across U.S. states as well (37, 101, 140). Using triggers some sympathy, it seems unrealistic that sympathy will dis-
the PSID 1976–2015, VanHeuvelen and Brady (142) provide the place the ideologies and interests that normally motivate political
first individual-level longitudinal analysis of household-level actors. Even if humanization inspires those already sympathetic,
getting political adversaries to read such narratives seems unlikely. There is convincing evidence that institutions drive the stagger-
On some level, political actors reflect public opinion. However, ingly high poverty of ethno-racial minorities (99, 150). Perhaps the
while there is no evidence that the United States has comparatively canonical literature is on state-supported segregation (160, 161).
low levels of compassion, vast evidence shows the American public Massey and Denton (34), for instance, show how federal, state,
has a uniquely strong individualistic ideology (1, 4, 10, 39). More- and local governments and the federalism embodied in all three
over, it has never really been proven that poverty scholarship—dra- using or withholding power made countless political choices to in-
matizing, humanizing, or otherwise—actually has much influence stitutionalize residential and school segregation. States facilitated
on policy-makers or public opinion. (or even subsidized) segregation and under-enforced discrimina-
tion law. All of this concentrated poverty, undermined mobility
Institutions out of poverty, and exacerbated the interaction of race and
In addition to the mobilization of collective political actors, the pol- poverty. Whereas residential preferences of individual whites (and
itics of poverty is a function of institutions such as laws and regu- others) are relevant, the state’s role in institutionalizing segregation
lations (106, 108). Consistent with U.S. poverty being stable at a and discrimination demonstrates political processes driving
high level, inequalities tend to be slow-moving and do not poverty (162).
respond promptly to electoral changes. There is path dependency
to poverty, and, to understand the institutional sources, we need a
long-time horizon of causes and effects. Institutions reflect the
residue of the power of collective actors in the past, and institutions
remain consequential even without active maintenance by collective
actors (103, 108). A strong version of institutionalism would claim
In a compelling demonstration of how powerful institutions are, are unlikely to provide effective policies to address the causes
Baker (163) shows that racial inequalities in poverty in the U.S. of poverty.
South are influenced by historical racial regimes (HRRs). HRRs Instead, this review advocates for political explanations and
capture myriad state-level historical racist institutions of slavery, reviews research framing poverty as a political problem and a
sharecropping, politicians’ opposition to integration, and disen- matter of distribution. Political explanations focus on poverty, not
franchisement devices. Southern states with a higher HRR score the poor. Political explanations emphasize the essential role of social
tend to have higher poverty. However, this pattern is much more policy generosity, political choices to penalize risks, power resourc-
pronounced for racial inequalities in poverty. While white poverty es, and institutions. Because political explanations provide a better
is uncorrelated with HRR, Black poverty and racial inequalities in explanation of the causes of the systemically high U.S. poverty, po-
poverty are strongly positively associated with a state’s HRR. litical explanations are far more likely to lead to effective policies.
Using multilevel models, Baker demonstrates that HRR exacerbates To conclude, this review is far from the first to criticize the in-
Black disadvantages in poverty. Using decompositions, Baker shows dividualistic problem of persons. Historians and critics of American
that HRR explains much of the Black-white poverty gap. poverty research have long challenged its individualism and argued
As is probably clear by now but should be underlined, institu- for structural and political perspectives (1–6, 15, 93, 96). Readers
tions provides a clear path to emphasize racism in theories of may recognize that the themes in this review reflect a long-standing
poverty. Political explanations in general and institutions in partic- critical undercurrent in and the contested nature of perennial
ular explicitly embrace that systemically high poverty, especially the poverty debates (76). What this review documents, however, is the
staggeringly high poverty of ethno-racial minorities, is driven by emergence and ascendance in empirical evidence of systemically
racism. This contrasts sharply with the three prevailing approaches, high U.S. poverty and its underlying political causes. Political expla-
which rarely explicitly incorporate racism. For example, Small et al. nations have greater potential and should be prioritized because
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