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Chapter 7 examines the various values that are reinforced by addressing poverty within a structural vulnerability perspective. The schematic model from Chapter 6 is redrawn with these values displayed. If the importance of particular values can be agreed on, and if it can be shown that these values are being undermined by the processes described in the structural vulnerability model, then strong arguments can be begin to be made for the necessity of particular policies to reduce poverty. It is argued that several major principles are strengthened by addressing structural vulnerability. These include increasing human potential, enlightened self-interest, equality of opportunity, social justice, and democratic representation. In each of these cases, examples are given to show how these values are reinforced.

Chapter 9 brings the book to a close. Insights are provided into the failure of America and the research community to truly understand the nature and causes of poverty in the past. The paradox of poverty amid prosperity has been both puzzling and concerning. The country has often provided little support and opportunities to the poor, focusing instead on remediation and “tough love” solutions. Not surprisingly, these have done little to reduce the extent of poverty in the United States. It is argued that a more structurally based understanding of American poverty is necessary. The last 10 years have been marked by signs that the country is beginning to move in this direction.

Chapter 5 examines the role that cumulative inequality plays in influencing the quantity and quality of human capital individuals acquire. It is argued that social class in particular tends to reproduce itself. The analogy of an altered game of Monopoly is used to illustrate this process. Those growing up with fewer resources and advantages will likely wind up with fewer resources as adults. The process of cumulative inequality results in advantages or disadvantages widening over time. Various stages of the life course are used to illustrate this pattern, including research on the neighborhood that one grows up in, the schools one attends, the type of job and earnings one has, and the quality of one’s health.

Chapter 1 provides an overview into the motivation behind the book and its contents. The author discusses his prior research pertaining to the structural vulnerability approach. The contents of the book are also described. The United States continues to have the highest rates of poverty among the wealthy countries. In the discussion in the text, the chapters are divided into three sections. Part I provides an overview into how poverty is measured and defined, along with a review of various approaches for understanding poverty. Part II details the structural vulnerability perspective. In Part III the structural vulnerability framework is applied to suggest policy strategies for alleviating poverty along with strengthening several fundamental principles and values.

Chapter 3 reviews various perspectives for understanding poverty. The traditional American ideology for understanding success and poverty is first reviewed. From this perspective, poverty is viewed as the result of individual failure. In particular, individuals in poverty are seen as not having the necessary motivation to get ahead, having made bad decisions in their life, or lacking in ability and talent. The condition of poverty is viewed by the general public as carrying considerable shame and stigma. The second half of the chapter reviews several social science perspectives explaining why poverty exists. These include the Marxist critique of capitalism, human capital theory, dual labor market theory, functionalism, distribution of welfare state resources, the culture of poverty, and the role of social isolation.

Chapter 4 explores the first component of the structural vulnerability model. Those in poverty are more likely to have characteristics that disadvantage them from competing in the labor market. In particular, they often lack human capital. Human capital refers to that basket of skills, attributes, and qualifications that individuals bring with them into the job market. The lack of human capital results in greater vulnerability vis-à-vis certain life crises occurring more often and with greater intensity. For example, those with less human capital are more likely to experience job instability, longer periods of unemployment, lower wages, and part-time work. Each of these, in turn, is associated with an elevated risk of poverty. The chapter also explores the overall increasing risk and vulnerability in American society over the last 50 years, particularly for those at the lower end of the income distribution.

Chapter 6 argues that there are two levels of understanding impoverishment. On one hand, it can be ascertained who is more likely to experience poverty through the impact that human capital exerts on creating individual economic vulnerability discussed in Chapter 4. On the other hand, why poverty occurs in the first place can be largely understood through failings at the structural level. These failings include a lack of decent-paying jobs and a weak social safety net. The analogy of musical chairs is used to illustrate these processes. Like a large-scale game of musical chairs, there are many more people competing for decent opportunities, such as livable wage jobs versus the number of such opportunities available. The chapter concludes by presenting a schematic model diagramming the structural vulnerability framework.

The paradox of poverty amid prosperity has plagued the United States throughout the 21st century: Why should the wealthiest country in the world also have the highest rates of poverty among the industrialized nations? Based on the decades-long research and scholarship, one of the nation’s leading authorities provides the answer. The Poverty Paradox develops a unique perspective for understanding this puzzle. The approach is known as structural vulnerability. Central to this new way of thinking is the distinction between those who lose out at the economic game and why the game produces losers in the first place. Americans experiencing poverty tend to have certain characteristics placing them at a greater risk of impoverishment. Yet poverty results not from these factors, but rather from a lack of sufficient opportunities in society. In particular, the shortage of decent-paying jobs and a strong safety net are paramount. Based on this understanding, this book details a variety of strategies and programs to effectively alleviate poverty in the future. Implementing these policies has the added benefit of reinforcing several of the nation’s most important values and principles. The Poverty Paradox represents a game changing examination of poverty and inequality. It provides the essential blueprint for combatting this economic injustice in the years ahead.

Chapter 1 introduces the major themes of the book. The topic of poverty has many myths, stereotypes, and misperceptions surrounding it. The purpose of this book is to confront and address these myths with facts and evidence. The book is divided into six sections. Section I looks at the characteristics of those experiencing poverty. Section II explores why poverty exists. The costs of poverty are addressed in Section III. Section IV examines the issue of welfare and the social safety net. Section V turns to the wider context of inequality. And finally, Section VI pulls together the arguments made throughout the book in order to provide a pathway for moving forward in the future.

Chapter 18 begins by examining how much economic inequality exists in the United States. With respect to both income and wealth inequality, the United States has the highest levels of inequality compared with other OECD countries. With respect to intergenerational economic mobility, the United States has less mobility than most other industrialized countries, with such mobility declining in recent decades. Greater levels of inequality are also associated with lower levels of mobility. Finally, high levels of inequality are correlated with increased violence, crime, and incarceration. The United States has been an outlier with respect to its failure to adequately address a wide variety of social policy issues, from child care, to criminal justice, to health care. Poverty is prime example of this failure and the predictable result of extremely high numbers of poor people.

Few topics are surrounded by as many myths, stereotypes, and misperceptions as that of poverty in America. The poor have been badly misunderstood since the beginnings of the country, with the rhetoric intensifying in recent times. Our current era of fake news, alternative facts, and media partisanship has led to a breeding ground for all types of myths gaining traction and legitimacy. The time appears right to set the record straight. Poorly Understood is the first book to systematically address and confront many of the most widespread myths pertaining to poverty. It powerfully demonstrates that the realities of poverty are much different than the myths. In many ways, they are more disturbing. The book is divided into six sections. The first five sections examine a wide range of poverty myths, including who is at risk of poverty, why poverty exists, the costs of poverty, issues surrounding the welfare system, and the wider topic of economic inequality. Armed with the latest cutting edge research, Poorly Understood not only challenges the myths of poverty and inequality but also explains in the final section why these myths continue to exist, as well as providing an innovative blueprint for how the nation can move forward to effectively alleviate American poverty.