Book SummaryPoverty, by America, by Matthew Desmond

1-Page Summary1-Page Book Summary of Poverty, by America

In Poverty, by America, Matthew Desmond writes that the United States, despite its vast wealth and prosperity, suffers from a level of poverty and inequality unseen anywhere else in the developed world.

According to Desmond, one in nine Americans and one in eight children live in poverty (defined by the US federal government in 2023 as an individual earning less than $14,580 per year or less than $30,000 for a family of four). He writes that a smaller—but still shockingly high—number of Americans live in deep poverty, on par with the poverty of the poorest people in developing nations like India or Bangladesh.

(Shortform note: When it comes to some key measures of well-being highly correlated with poverty, US statistics do often resemble those of less economically developed nations. For example, life expectancy for some disadvantaged groups in the US appears to be comparable to or even worse than that of certain countries with lower GDPs, such as Bahrain or Mongolia. Similarly, the infant mortality rate for African Americans is similar to rates in countries like Tonga and Grenada. Finally, the US has the highest incarceration rate in the world, with African American males facing rates of incarceration unmatched internationally.)

How can this level of abject misery and deprivation exist in a country as wealthy as the United States, with a GDP higher than the combined total of the next five largest economies? This is the core question that Desmond seeks to answer. According to him, poverty in America persists because it benefits many Americans to keep a share of their fellow Americans in a state of want—and he issues a moral call to arms to readers to examine their role and responsibility in benefiting from and perpetuating the cycle of poverty.

Desmond is a professor at Princeton University, and he’s written a number of books, including the Pulitzer Prize-winning Evicted: Poverty and Profit in the American City. His research centers on inequality and...

Poverty, by America Summary Part 1: The Lived Experience and Consequences of Poverty

The US federal government defines poverty in 2023 as an individual earning less than $14,580 per year or less than $30,000 for a family of four. But, writes Desmond, poverty is far more than just a lack of income and can't be reduced to a simple math equation. To truly understand the phenomenon of poverty in America, writes Desmond, it’s crucial to explore what it actually feels like to be poor.

He writes that poverty is a complex state of being, encompassing a multitude of experiences, emotions, and consequences that go far beyond financial hardship. Desmond stresses that poverty is a wrenching, soul-crushing experience, imbued with physical and psychic pain, representing a loss of freedom, agency, choice, and options for those ensnared by its grasp.

The consequences of poverty are dire and far-reaching. It leads to premature death, illness, drug addiction,...

Poverty, by America Summary Part 2: False Explanations for Poverty

Having established the true costs of poverty, Desmond explores why poverty remains such a persistent feature of American life, despite the United States’ economy being large and wealthy enough to raise every adult and child above the defined poverty level. He writes that since the federal anti-poverty initiatives of the 1960s, there has been little sustained progress against poverty rates, despite substantial spending on programs designed to combat poverty over the past 50 years.

The stubborn persistence of poverty has given rise to several false explanations for its staying power, including immigration, non-traditional family structures, and a bad work ethic among the poor.

Did the War on Poverty Fail?

Although Desmond criticizes federal anti-poverty initiatives as having been largely ineffectual, other writers have a more favorable view of their impact.

They argue that the “War on Poverty'' programs, such as Medicare, Medicaid, and food stamps, have been successful in significantly reducing poverty rates in the United States—particularly in alleviating poverty among vulnerable...

Poverty, by America Summary Part 3: How Wealthy Americans Exploit Poverty

Since we’ve explored how and why the commonly cited explanations for poverty fall flat, let’s turn our attention to what Desmond argues does explain the persistence of poverty in America. He writes that the primary force perpetuating poverty is the non-poor Americans who benefit from keeping their fellow Americans poor. According to Desmond, it's a story of exploitation and appropriation, where choices made by individuals and society at large contribute to the immiseration of millions.

Does Wealth Cause Poverty?

Desmond argues that the wealth of some Americans comes at the expense of the poverty of others. But is this analysis oversimplified? Some argue that the true relationship between wealth and poverty is more complicated. According to this argument, increased wealth among the world's richest individuals does not necessarily come at the expense of the poor: As the super-rich accumulate wealth, it’s often a result of creating new businesses, innovations, and jobs that can help alleviate poverty.

Notably, there’s a...

Poverty, by America Summary Part 4: Empowering the Poor: A Multifaceted Approach to Eradicate Poverty

To truly alleviate poverty, writes Desmond, it's essential to go beyond providing financial assistance, although that's undeniably important. He argues that to eradicate poverty, we need to empower the poor, granting them economic and political agency to shape their economic futures.

This section explores the necessary multifaceted approach: strengthening unions to enhance collective bargaining power, creating paths to homeownership, ending exclusionary zoning policies, and cracking down on welfare for the rich.

Empowerment Strategy #1: Strengthen Unions

One powerful way to empower workers, writes Desmond, is to reinvigorate the labor movement and strengthen unions. The existing legal framework, which requires workers to organize company by company, often puts unions in a disadvantaged position—since employees at each company need to mobilize and negotiate separately, requiring unions to invest significant time, effort, and resources in the logistics of coordinating this. This fragmentation of organizing efforts can also make it easier for employers to target and disrupt specific campaigns.

Sectoral bargaining, writes Desmond, offers an alternative that would...

Shortform Exercise: Understand Your Role in Perpetuating Poverty

Explore how your choices as a citizen, voter, and consumer may contribute to the continuation of poverty.

What are the key factors that Matthew Desmond discusses in the book as contributors to poverty in America, and how do you think these factors manifest in your life or community? Explain your answer. (For example, you can reflect on whether you or people in your community have experienced housing insecurity, such as frequent moves or difficulty paying rent.)