Why Can't More Poor People Escape Poverty

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"In the 1990s, social psychologists developed a theory of “depletable” self-control. The idea was that an individual’s capacity for exerting willpower was finite—that exerting willpower in one area makes us less able to exert it in other areas." "The level at which the poor have to exert financial self-control, they have suggested, is far lower than the level at which the well-off have to do so. Purchasing decisions that the wealthy can base entirely on preference, like buying dinner, require rigorous tradeoff calculations for the poor." "Again, if you have enough money, deciding whether to buy the soap only requires considering whether you want it, not what you might have to give up to get it. Many of the tradeoff decisions that the poor have to make every day are onerous and depressing: whether to pay rent or buy food; to buy medicine or winter clothes; to pay for school materials or loan money to a relative. These choices are weighty, and just thinking about them seems to exact a mental cost." "And so, in addition to all the structural barriers that prevent even determined poor people from escaping poverty, there may be another, deeper, and considerably more disturbing barrier: Poverty may reduce free will, making it even harder for the poor to escape their circumstances." "This brings up a second, similar point: Comfort goods like washing machines and dishwashers free up valuable time and attention. Think of all the things the wealthy do to spend more time focusing on what’s important. They can pay bills automatically, they can hire babysitters and have food delivered, they can have their homes and clothes cleaned for them. But, in the developing world, cost-effective time savers have come much more slowly to those who most need them. Five-dollar, energy-efficient stoves can cut firewood usage, improving children’s health and halving the amount of time it takes to gather enough firewood to cook. Small solar panels systems, too, as The New York Times recently reported, can play “an epic, transformative role” in homes off the electrical grid, saving families time and money on kerosene. Broadly distributed, such simple innovations would allow the poor to avoid difficult tradeoff decisions about how they spend their time or even their money."