Poverty strains cognitive abilities, opening door for bad decision-making,
new study finds


By Brady Dennis
<http://www.washingtonpost.com/brady-dennis/2011/02/25/ABMgsCJ_page.html> ,
Published: August 29E-mail the writer
<mailto:[email protected]?subject=Reader%20feedback%20for%20'Poverty
%20strains%20cognitive%20abilities,%20opening%20door%20for%20bad%20decision-
making,%20new%20study%20finds'>  


Poverty consumes so much mental energy that people struggling to make ends
meet often have little brainpower left for anything else, leaving them more
susceptible to bad decisions that can perpetuate their situation, according
to a study <http://www.sciencemag.org/content/341/6149/976>  published
Thursday in the journal Science.

“Past research has often blamed [poverty] on the personal failings of the
poor. They don’t work hard enough; they’re not focused enough,” said
University of British Columbia professor Jiaying Zhao
<http://www.princeton.edu/~jiayingz/pdfs/JiayingZhaoCV.pdf> , who
co-authored the study as a Princeton University graduate student. “What
we’re arguing is it’s not about the individual. It’s about the situation.”

As part of the study, researchers conducted experiments on two groups of
subjects: low- and middle-income shoppers in a mall in New Jersey, and sugar
cane farmers in rural India. 

In the mall experiment, shoppers underwent a battery of tests to measure IQ
and impulse control. However, half the participants were first given a
“teaser” question — what they would do if their car had broken down and
needed $1,500 worth of repairs — designed to put a pressing financial
concerns at the forefront of their thoughts. 

In India, researchers tested the cognitive capacity and decision-making of
farmers before the sugar cane harvest, when they were most strapped for
money, and afterwards, when they had fewer financial woes. 

The results showed that people wrestling with the mental strain of poverty
suffered a drop of as much as 13 points in their IQ — roughly the same found
in people subjected to a night with no sleep. 

“Poverty is the equivalent of pulling an all-nighter,” said Harvard
economist Sandhil Mullainathan <http://scholar.harvard.edu/mullainathan> ,
another of the study’s authors. “Picture yourself after an all-nighter.
Being poor is like that every day.”

Mullainathan said previous research often has assumed that poor people are
poor because they are somehow less capable than others, whether inherently
or because of past trauma or other environmental factors in their lives.
But, he said, what the latest study suggests is that the strain of poverty
can tax the cognitive abilities of anyone experiencing it — and that those
abilities return when the burden of poverty disappears. 

“While the poor may be experiencing a scarcity of money, at some level what
they may really be experiencing is a scarcity of bandwidth, of cognitive
capacity,” he said. “It’s the situation that’s creating the stress.”

Zhao and Mullainathan said that their findings, if accurate, could have
profound implications for public policy. 

For starters, policymakers “should beware of imposing cognitive taxes on the
poor just as they avoid monetary taxes on the poor,” the paper states.
Filling out long forms, deciphering complicated rules or undergoing lengthy
interviews can consume scarce cognitive resources.

“You are captured by these monetary issues — how to pay rent, how to pay
bills,” Zhao said. “As a result, you’re less attentive to other problems.
You neglect other things in life that deserve your attention.” 

 

 

           Thé Mulindwas Communication Group
"With Yoweri Museveni and Dr. Kiiza Besigye Uganda is in anarchy"
           Kuungana Mulindwa Mawasiliano Kikundi
"Pamoja na Yoweri Museveni na Dk. Kiiza Besigye Uganda ni katika machafuko"

 

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