Desmond - Poverty, by America

 Matthew Desmond's Poverty, by America (2023) references McGhee's The Sum of Us (2021) and repeats the critique that systemic racism and classism undermine opportunity among oppressed classes. Where McGhee focuses more on how this oppressive classism costs everyone, not just those put down by it, Desmond addresses ways that America created this system and how privileged segments of Americans are served by perpetuating it.

The earlier chapters review why America has not been successful in addressing wealth inequality, including disenfranchisement of workers, poor people paying more for what little they get, and reliance on welfare as a nod to addressing poverty. The later chapters move to ways that America might actually move forward in creating a fairer economy.

Desmond poses the shared dilemma, "We are much richer than citizens of other countries, including other wealthy ones, and we're much richer than our forebearers. And yet, the dominant mood among the American middle and upper classes is one of fret and worry" (p. 103). The complaint of Americans who can be judged by most standards as being comfortable is that they work nonstop. In addition, having worked so hard for their living then translates to expecting products that are readily available and cheap. Herein is the problem, fast and cheap is only possible when supply lines erupt and collapse based on demand and when all the working class can expect is poverty-inducing compensation for their time. Heaped on top of fast and cheap is that as accumulated wealth increases, the wealthy are ever more able to withdraw from reliance on public goods and services. Increases in wealth then result in declining willingness for the wealthy to support and fund public services which leads to deteriorating quality of service - a destructive downward spiral. Whether it's resources outside one's immediate neighborhood like schools or public parks and recreation, or mass transit, it's always a fight to gain support in wealthier enclaves.

How did we get here? Desmond identified the major driver of sustained poverty coming from the biggest tax cut in U.S. history, the Economic Recovery Tax Act of 1981 of the Reagan Presidency. Of course, the tax reduction benefit went primarily to wealthier citizens and even the more progressive policies pushed by those in this group tend to "pose no real threat to their affluence" (p. 115). Working class whites see how progressive moves weren't intended to help them and they soon become resentful about elites and the institutions that they support.

How do we get out of this cycle? First, we should cease exploiting working-class citizens. Second, we must stop subsidizing affluence over alleviating poverty. Third, we should stop allowing privileged communities to isolate themselves from the broader world. The things that can make a difference include making sure that low-income Americans can easily access assistance for which they qualify, ensuring that safe and affordable housing is available to all, that all children have a crack at security and success, and driving down the "agonizing correlates of poverty, like violence, and despair" (p. 124).

Poverty in America is systemic and begins with tackling tax cheaters, estimated as a loss of $1 trillion annually. Along with plugging tax evasion, policies should be enacted that demonstrate goodwill and avoid stoking suspicion that kindles resentment. A successful and popular policy that resulted in a 50% reduction among those who live in poverty in the 1960s was the Social Security amendment of 1965. This program is constantly threatened by conservatives who label it as social welfare, but most Americans know that they invested in it and deserve to benefit from it. Poverty in America is also personal and each individual can help by adopting "poverty abolitionist" habits of shopping and investing with a commitment to human dignity - and let others know you've chosen to change. The compelling reality is that the U.S. has a lot of economic vitality, in fact it is abundant, and this reality must be asserted to counter those who insist on maintaining focus on competition for scarce resources of various sorts. There is enough to go around if unequal access is addressed!