Poverty as a Culture

Income inequality is a dynamic of poverty. It questions not the wealth nor abilities of the nation, but rather the distribution and concentration of its resources. With the United States, the distribution of wealth among the population is severely skewed. This is due in part to the political and economic institutions in place. Additionally, the cultural attitude regarding welfare and poverty has resulted in the acceptance of poverty as a result of personal attributions rather than circumstances, a belief that negates the necessity of government action on behalf of those experiencing poverty. Though public policy has attempted to address this issue, many barriers, both political and social, stand in the way of changing the cycle of poverty in Memphis.

The income inequality in Memphis and the United States is not only due to minority discrimination, but to the economic system built around maintaining the wealth inequality between haves and have-nots. The Obama and Bush tax cuts disallowed for progressive taxation, favoring a flat tax that disproportionately effects those experiencing poverty. Tax cuts for corporations and businesses are usually implemented with the goal of inspiring novel business transactions and jump-starting local economies. However, when these tax breaks are given to well established companies or large corporations, the tax cuts serve as nothing more than blockades to ensure money is kept at the top of the chain. The boom of industries based off wealth management indicate the importance of monetary manipulation of economic industries exacerbated by a globalized economy that allows money to flow at all times.
Furthermore, trickledown economics is a fundamentally flawed economic plan that manipulates our idea of wealth disparity. In the United States’ winner-take-all system, the average worker is rarely rewarded for an increase in productivity. The laborer’s sociopolitical capital is limited because of their decrease in necessity, and thus those who compose the 1% are reaping the benefits from other’s poverty. With minimum wage not being adjusted for inflation, there is a warped idea of what constitutes “poverty” for the working class. With trickle-down economics, we’d expect to see some of these profit earnings being cycled back into the working class either as supplements for their labor or through support programs. However, because the top 1% invests their profits, the majority of the wealth in the United States will bypass our own denizens. Because the top 1% of American citizens hold one-third of the nation’s wealth, those who fall into the bottom 50% of the population (holding 2.5% of the nation’s wealth as a whole) are limited by the use of money by the 1%. Through international investment and treasury bonds, those with wealth ensure their financial stability while draining the majority of denizens.

The cultural view of poverty as a personal rather than circumstantial shortcoming is a major barrier in increasing income and wealth equality. While people view poverty as an individual characteristic in which the individual is culpable, policy changes will fail to remove the stigma of welfare and social programs needed to increase economic mobility. Fundamental Attribution Errors continue to hold back policies that would otherwise assist families in poverty. As such, without an honest recognition by society to see poverty as a result of a corrupt capitalist system that favors certain groups over others, programs will not be sufficiently supported and change makers will be unable or unwilling to assist in the national change toward wealth inequality alleviation that we so desperately need.

When we consider wealth inequality and economic mobility, it must be recognized that all people benefit form a healthy society in which people are able to support their communities. While experiencing poverty, many people are unable to fully participate in their environment, leading to less education, public services, and efficacy. In saying “No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable”, Adam Smith successfully surmised the heart of our issue: when human society is built upon interaction, we are all interdependent upon the wellbeing of our neighbor. In order to improve, Memphis must reject the culture of poverty and work towards recognizing the unacceptable way people in labor are treated through salaries, benefits, and beliefs.