Why do poor people make bad decisions

The Story of a casino

In 1997, not far from North Carolina to open a casino, which manages the Cherokee. Despite the fact that these institutions are always a concern for the population, the casino quickly became profitable: in 2004 it earned 150 million, and in 2010 - 400 million dollars in profits. This money allowed the Cherokee to build a hospital, a school and a fire station. In this case the lion's share of the money went straight into the pockets of the population - more than 8000 men, women and children. Over the years, the average family income of the casino increased 12 times.

Over the years, Professor Jane Costello (Jane Costello) studied children's behavior Cherokee, noting the problems and successes. It turned out that those kids who grew up in poverty were much more prone to problems with discipline. But along with the increase in average household income and the improved situation with the behavior.

40% of children have to behave better, the level of juvenile crime decreased. Minors were less likely to use alcohol and drugs, to smoke less.

It turns out that poverty generates mindset and behavioral skills as a child.

Why poor people commit folly

A world without poverty - one of the oldest utopias. But anyone who seriously thinks about it, necessarily will face these questions:

• Why do poor people more likely to commit crimes?
• Why they are prone to obesity?
• Why do they consume more alcohol and drugs?
• Why take so many stupid decisions?

Sounds rough, but let's look at the stats. Poor people are more likely to borrow money and less laying, smoke more, exercised less, drink more alcohol and eat junk food more often. Declare free training on financial management, and the poor will be the last to be written. Summary of poor people away from idealAnd on interviews they often come unprepared and in the wrong way.

Margaret Thatcher once said that poverty - a defect of personality. Few politicians have gone so far in their judgments, but this idea is not unique. In a world dominated by the conviction that poverty - it is something that man must overcome itself.

Of course, the state can encourage the poor man in the right direction with the help of payment systems, penalties and training. But does it make sense?

But does it make sense?

What if all the poor can not help themselves, and the good intentions of the State only worsen the situation?

Difficult questions, but not only them, we currently Asking. For example, Eldar Shafir (Eldar Shafir), a psychologist at Princeton University, is developing a revolutionary theory of poverty. Its main objective - to create a new field of knowledge - science deficit.

Wait, this is already there. Economies called.

Eldar Shafir hear these accusations constantly. But his interest is focused on the psychology of scarcity - an area in which performed surprisingly little research.

For economists, all in one way or another connected with the notion of scarcity. After all, even the big spenders can not buy whatever they want. deficit perception is important. It affects our character. People are starting to behave differently when they feel shortage of a particular good.

No matter what kind of well-being is at stake. Time, money, friendship or food - a lack of These benefits lead to the formation of a special, "deficit" mentality. People who constantly feel the shortage of well solve short-term problems. The poor can miraculously make ends meet, but only for a short period of time. This phenomenon Eldar Shafir calls decline in mental capacity.

Poverty can not relax

Despite these advantages, the deficit mentality is a big drawback. Deficiency automatically focuses your attention on what is important in the near future, such as urgent bills. And all the long-term prospects remain out of sight. Eldar Shafir explains:

Deficit devouring character. Lost the ability to focus on other things, it is very important to you.

The researcher compares it with a new computer that handles ten complex queries simultaneously. It will run slower and slower, make more mistakes and more likely to fail. Not because of bad computer. The thing is that it performs too many tasks at once. Poor people are the same problems. They make bad decisions not because they are stupid. And because staying in contextWhere anyone would take a bad decision.

Questions like, "What are we going to eat today?" And "How to live to the end of the week?" Require attention and great effort. The poor man has been losing concentration, it is easy to to distract. This goes on every day. It is not surprising that sooner or later such people begin to do something stupid.

There is a big difference between those who are always busy, and those who do not have money constantly from poverty can not relax.

Poverty - it's not the nature of the problem. This is a problem with cash.

Is it possible to say exactly how stupid person becomes out of poverty?

Eldar Shafir says that poverty takes 13-14 IQ-points. This effect can be compared with the effects of chronic sleep deprivation or alcohol. Surprisingly, these data could not get over the 30 years. Shafir admits:

Economists have studied the phenomenon of the deficit over the years. as much time psychologists study cognitive limitations. We just put two and two together.

Eldar Shafir says poverty reduction is advantageous that before no one noticed. The researcher offers not only calculate the GDP, but also to measure the capacity of the mind. The smaller it is, the stronger we are limited by poverty. The larger it is, the more productive workers, the higher birth rate, better health... Shafir says poverty reduction will lead to the prosperity of the state.

As for specific recommendations, the researcher proposes to deal with the consequences of poverty in stages.

What a person can do on their own and now

The first thing that should make the person suffering from a lack of money - is to stop panicking and get rid of the constant stress. Trying to solve problems that arise every day, you are depriving themselves of the opportunity to plan, to dream and to relax.

Problems still arise. Will begin to flow tube. Broken car. A police officer will issue a penalty.

How to help yourself to relax? Plan a vacation in advance. Even if you have absolutely no time. According to Shafir, 30 minutes will be enough to "meet with them." Of course, it will not be easy. But such a step is necessary.

What else can you do? Let's go back to the history of the casino. Aki Randall (Randall Akee), an economist at the Los Angeles calculated that an even distribution of revenue from the public casinos in the end helped to reduce the overall costs. Eliminating poverty, society actually generate more money. This happened due to a drop in the level of crime and increase the level of education, as well as work safety and health services.

The idea that the fight against poverty, less than the actual poverty and its consequences is not new. A similar idea was expressed by the British essayist Samuel Johnson in 1782. He wrote:

Poverty - the biggest enemy of human happiness. It destroys freedom, making some unattainable goal, while others - in an incredibly distant.

Unlike his contemporaries, Johnson understood that poverty is not a lack of character.

Poverty - is a lack of money.