A Case For Giving Money To Those Who Are Bad With Money
This is a short lesson, but one I return to again and again — a lesson I learned from Rutger Bregman in his book Utopia for Realists.
The Assumption
It’s easy to believe that poor people are poor because they make bad decisions.
Firstly, this assumption helps us make sense of why poverty exists, because we know from experience that bad decisions lead to bad outcomes. It gets us off the hook for living happily alongside poverty, after all, we are where we are in life because we have made better decisions than those who are not doing as well…
“Poverty is a personality defect.” — Margaret Thatcher
Secondly, we see evidence of poor people making bad decisions. We see homeless people being unproductive, we see poor teenagers dropping out of high school at a higher rate, and we see crime and anti-social behavior accruing in low socio-economic regions. However, as discussed in Saving Lives Reduces Over-Population, correlation isn’t causation, and sometimes a counter-intuitive cause is at play.
The (counter-intuitive) Reality
But, while bad decisions can lead to poverty, it turns out people in poverty might also make worse decisions because they are poor.
This post continues at nonzerosum.games with interactive elements that can't be replicated here on the forum, please visit the site for the full experience.
FWIW the study on scarcity priming that you cite on your website has failed to replicate.
I'm familiar with psychology. But the causes and consequences of poverty are beyond my expertise.
In general, I think the case for alleviating poverty doesn't need to depend on what it does to people's cognitive abilities. Alleviating poverty is good because poverty sucks. People in poverty have worse medical care, are less safe, have less access to quality food, etc. If someone isn't moved by these things, then saying it also lowers IQ is kind of missing the point.
Another theme in your post is that those in poverty aren't to blame, since it was the poverty... (read more)