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Poorly Understood: What America Gets Wrong About Poverty

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What if the idealized image of American society-a land of opportunity that will reward hard work with economic success-is completely wrong?

Few topics have as many myths, stereotypes, and misperceptions surrounding them as that of poverty in America. The poor have been badly misunderstood and, as a result, mistreated since the beginnings of the country, with rhetoric only ratcheting up 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 and misinformation to gain traction and legitimacy.

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, and indeed in many ways they are more disturbing. The idealized image of American society is one of abundant opportunities, with hard work being rewarded by economic prosperity. But what if this picture is wrong? What if poverty is an experience that touches the majority of Americans? What if hard work does not necessarily lead to economic well-being? What if the reasons for poverty are largely beyond the control of individuals? And if all of the evidence necessary to disprove these myths has been readily available for years, why do they remain so stubbornly pervasive? These are much more disturbing realities to consider because they call into question the very core of America's identity.

Armed with the latest research, Poorly Understood not only challenges the myths of poverty and inequality, but it explains why these myths continue to exist, providing an innovative blueprint for how the nation can move forward to effectively alleviate American poverty.

250 pages, Kindle Edition

Published March 1, 2021

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838 people want to read

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Mark Robert Rank

15 books13 followers

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Displaying 1 - 30 of 32 reviews
Profile Image for Dan Connors.
369 reviews43 followers
September 9, 2021
“History is written by the rich, and so the poor get blamed for everything.” — Jeffrey D. Sachs, economist

“When I give food to the poor, they call me a saint. When I ask why the poor have no food, they call me a communist.”

― Dom Helder Camara, Dom Helder Camara: Essential Writings

“If you're in trouble, or hurt or need - go to the poor people. They're the only ones that'll help - the only ones.”

― John Steinbeck, The Grapes of Wrath


Much has been written about poverty throughout history. And many things have been tried to alleviate the poverty in the world, but it stubbornly keeps picking off the weak and vulnerable, condemning them to shorter lives of desperation and shame. It could be argued that poverty is more prevalent today than ever before, even in a time of unbelievable wealth.
Abject poverty may be slightly better, but many more people live in the danger zone, where they are one medical bill, layoff, or divorce away from disaster. Why do we keep blaming the poor for poverty instead of looking at structural problems with the economy? Why does the stigma that comes with poverty make the poor become unwelcome and invisible?


Poorly Understood is the latest attempt to look at the research around poverty in the United States, and the three authors from the world of academia have plenty of data to back themselves up. Mark Robert Rank, the lead author, is a professor at Washington University in St. Louis and one of the nation's leading experts on poverty, inequality, and social justice. Rank has written seven books, all on the topic of poverty and inequality, and this one tries to debunk many of the myths that surround poverty and the poor.


Probably the biggest myth the book debunks is that poverty will never affect "normal" Americans. The actual data shows that by the age of 75, at least 58% of us will spend at least one year in poverty, and 76% will fall to 1.5 times the poverty level. 65% of Americans will at one time or another live in a household that gets some kind of government transfer payments- unemployment, food stamps, EITC, and more. For those who think poverty is not a pressing problem, the authors have come up with a Poverty Risk Calculator that will tell you approximately how likely you are to fall into poverty at any moment. Being a white male, my risk was only 15%, but you can find yours here.


For most of us, poverty spells are temporary and short, but economic insecurity is widespread and the dangers of dropping into poverty with an unexpected setback are very real. According to the book nearly half of the falls into poverty end in a year, but for those who are stuck in long-term poverty, the deck is stacked against them.


The current system, as inefficient and unfair as it is, obviously works for those at the top of it. They are able to keep it going and justify their outsized wealth with the myths that are covered in this book. Poverty is a stigma, so people don't like to think about it. The poor are bad people, so no one wants to associate with them. Everybody wants to be in the 1%, but 99% of us will never make it, and over half of us will live lives of insecurity and uncertainty. The authors go to great lengths to disprove the myths of "deserved" poverty and make the reader think about better ways to distribute wealth.


Some popular myths:

1- The poor tend to live in inner-city, crime-ridden neighborhoods. In reality, poverty is increasingly decentralized and found in both suburbs and rural areas. Only 12% of the poor live in the stereotypical distressed inner city neighborhoods.

2- Poverty is a problem for people of color. Actually, white Americans make up 66% of all people in poverty. The rates for people of color are higher, but since there are so many more white Americans, their raw number of people in poverty is the highest.

3- More education can help solve poverty. This one opened my eyes. Rates of both high school and college graduation have increased significantly since 1980, but the poverty rate has barely changed. The sad truth is that there just aren't enough good-paying jobs with benefits to lift people out of poverty, no matter how educated they get. Education only increases the level of competition.

4- People are poor because they make bad decisions. This is false because everybody makes mistakes. The difference is that mistakes made by the wealthy rarely hurt them, while those made by poor people can be catastrophic and life-changing. Everything at the bottom of the economic ladder gets harder, and there's much less room for error, which takes a big cognitive toll on poor people. The added stresses of poverty (poor health, lack of transportation, food insecurity, crime, and lack of stable marriages) make good decisions less likely, not to mention the toll stress takes on health.

5- Welfare fraud is common. Data shows that most mistakes in government benefits are due to unintentional errors. Actual fraud of the welfare system is much less common than people think.

6- The poor are all lazier than the rest of us. The majority of poor people are either children, the elderly, and the disabled, none of whom should be expected to fully support themselves. Those who do work often work in menial jobs such as janitors, health aids, and fast food, where the work is both physical and hazardous. We like to think that life is fair and hard work pays off, but we all know people who have gotten ahead through connections and politics, not merit or hard work.

7- The poor in America are better off than the poor of other countries because the US is so rich. The USA spends much less of its GDP on its welfare state than most OECD (developed) countries. Our faulty health care system falls way behind most other countries in both affordability and accessibility. Single mothers fare much worse here than in other countries. The average poverty rate in most OECD countries is 10.7%, but in the US it is 17%. (Sweden has a poverty rate of only 5.3%, mostly due to generous government benefits.)

8- America is the land of opportunity where anybody can rise from poverty to wealth. This may have once been true, but the data shows that economic mobility in the US is mostly determined by the wealth levels of parents.


All of these myths survive because of the powerful narratives that keep our system in place. How to deal with poverty is ultimately a political choice, and the US political system is tilted strongly towards the wealthy. Politicians rely on campaign contributions to get elected, and they do the bidding of the people who contribute to them once in office. The poor are so disenfranchised that they have the lowest voting participation rates, which only exacerbates the problem. The balance of power is held by those in the middle of the economic ladder, and they've been trained to fear and look down upon the poor and poverty. In the US especially, race plays a central role in providing a dividing line of those who deserve wealth and those who don't.


The authors of this book point out that extremes in poverty can have terrible costs, especially among children. Children who are food insecure, moved frequently, and abused by stressed-out parents start out life with many strikes against them and too many of them fall into habits that guarantee they will never live productive lives once adults. The authors estimate that childhood poverty alone costs the US one Trillion dollars per year in reduced earnings, increased crime, healthcare costs, and prison expenses. They estimate that as little as $77 Billion in government spending could reduce childhood poverty by over 60%, which would be an investment that pays continuing dividends.


Lyndon Johnson instituted a war on poverty in the 1960's that was partially successful. Poverty rates dropped in half in only 14 years. Since the 1980's however, America has gone the opposite direction, and poverty has bounced back, along with the harder to define economic insecurity, a category that encompasses millions of people who are just one piece of bad news away from homelessness or bankruptcy. In 2021, in response to the Covid epidemic, congress passed a landmark piece of legislation that temporarily saved millions from falling into poverty, but it's unlikely that those benefits will last.


The authors recommend the usual antidotes to poverty in the form of increased government subsidies, which seems like a hard sell in today's America. They also recommend somehow coming up with more good paying jobs and a better social safety net. With good paying jobs harder and harder to create, a universal basic income may be the only answer left that can prevent massive poverty and all that comes with it- crime, drug use, hopelessness, and death. America needs to stop blaming the poor and look at all of the enormous potential that is being wasted.


Poorly Understood is a sobering, informative book on poverty and the myths surrounding it, and I recommend it to anyone who is comfortable or struggling, so that we can all build a better country together for the future and for the next generations.
Profile Image for Erin.
259 reviews3 followers
August 2, 2021
A very useful systematic review of the most common myths & stereotypes about poverty in the United States.

Myth: Poor people don't work hard.
Reality: Most poor people are employed. Hard work is insufficient.
Myth: It's better to be poor in the US than in any other country.
Reality: America's poor are worse off than elsewhere.
Myth: Poverty doesn't affect me.
Reality: The economic cost of poverty to all of us is enormous.
Myth: Poverty is inevitable; there's nothing to be done.
Reality: The extent of poverty in the US is a policy choice. There is ample evidence of successful government programs that reduced poverty tremendously, Social Security being the foremost example.

And many more. It's an accessible book, with many short chapters that are concise and to the point. But very data heavy, not a lot of personal stories. If you're looking for a book to understand poverty with more opportunities to connect emotionally with individual narratives, I'd recommend "Broke in America" by Shaddox and Goldblum, which is still very research based but includes compelling anecdotes. But you really can't beat this one for its systematic breakdown of the research evidence.
68 reviews16 followers
June 1, 2022
This is an excellent book confronting the myths around poverty in the United States. Much of this was information I was already familiar with, but with additional context, examples, updated data, and/or offering new perspectives and ways of thinking about things. This is a book that I checked out from the library, but by a quarter of the way through knew I would be purchasing as something I can reference again and again in my anti-poverty work.

I may have small quibbles with the book here and there, but on the whole I think this is one of the best books I have encountered discussing poverty in the United States (and I've read a lot of them). It's true some of that could be recency bias, but even taking that into account this book would fall into the top tier.

Right now there are two books that if read together I think give a very robust understanding of poverty in the United States; this one and Heather McGhee's The Sum of Us: What Racism Costs Everyone and How We Can Prosper Together. Please go read both of these books right now!
166 reviews197 followers
August 7, 2022
Really excellent summary of research, arguments, and rebuttals to common arguments about poverty. As a socialist, I am probably more radical in the conclusions I draw from this evidence that are the authors. However, this book is very helpful reading for any progressive seeking to debunk capitalism’s self-justifying myths.
Profile Image for Sara.
23 reviews5 followers
July 8, 2023
Great information to help us form a more accurate opinion around policies and potential improvements. It is so important to accurately understand what we are up against so that we can look past biases and reach for solutions together. The book includes many tables and graphs so though an audio version is convenient it
does miss out on these.
Profile Image for Pat | _chaoticbooknook.
395 reviews11 followers
August 7, 2021
Not the most riveting book, but a great book that clearly, succinctly, and factually synthesizes all the myths and issues surrounding poverty in American and breaking it down. I had known a lot of the facts listed in the book, but having it all in one place with corresponding data helped me better understand the issues and uncover some of the myths I didn’t realize I still held onto about poverty.

An easy read for anyone who wants to begin to understand the issue of poverty in America.
Profile Image for Kimball.
1,396 reviews20 followers
December 28, 2024
This book's boring AF. I can't stand pompous authors like this that act like they have all the answers and know everything. In attempting to debunk certain nit-picked "myths" about poverty she unknowingly exposed glaring ones of her own. Also she couldn't even narrate the book herself.

You can't compare the US with other developed nations simply because the US is in a league of it's own. Like when she talked about US kids in poverty vs Denmark. The difference is because Denmark has a fraction of the kids the US does. Also, a person poor in the USA is much better off than someone poor in a developed country for may reasons, our economy, the dollar value, the infrastructure, the open land, and most of all the US military.

She has no skin in the game at all. How much of the research did she do herself or did she just regurgitate what others did? How much does she donate to the poor both in time and money? Does she ever get down into the trenches? What will she do with the proceeds of this book? Donate it to the poor? The answer is a resounding "no!".

She likes to ask, "so what needs to change? A lot." But she has yet to give any decent, clear suggestion. Like all people who quickly accuse and then dance around this subject.

She doesn't want to address the fact that if everyone in America has an equal $20k. In 5 years most people who are poor before will be poor after getting that money. Most people who are rich and smart with money will be rich and smart with their 20k.

The only outrageous thing she said that was true is that CEOs earn 300x more than their employees. This cannot be.
1,249 reviews
March 29, 2023
This book aims to dispel many of the stereotypes and misunderstandings about poverty, including:
- Most Americans will experience a year or more of poverty sometime in their life.
- The poor are mostly outside of inner-city neighborhoods. Most of them are White.
- Poverty spells are usually short but frequent.
- Hard work is not enough to get out of poverty.
- Raising education and skills won't alleviate poverty.
- Social programs can and have dramatically alleviated poverty.
- The estimated cost to the US of childhood poverty alone is about 5% of the GDP (much more than it would cost to dramatically lessen it).
- Welfare fraud is very slight (less than 1% of the fraud rate on tax returns).
- Upward social mobility is mostly a thing of the past.
The information is important, clearly presented, and well referenced. The writing style is slightly more engaging than average for a book of this sort, but not as engaging as stories would be. The chapters are short and divided into several sections, so the book can handily be read in short sessions.
Profile Image for Alice.
417 reviews
August 31, 2023
3.5 stars - i think this should be the "go-to" book for anyone wanting to learn about poverty in the US. it's a very thorough summary of what poverty truly looks like in this country. if you're already familiar with issues of poverty and economic/social policy research, the book probably won't offer anything new but it is well organized and written in a very accessible tone. i also really appreciated how many international comparisons the author made in terms of how other countries deal with poverty and social welfare (sadly too few books do this). finally, it was so nice to hear shoutouts to the work of my Urban Institute colleagues!
Profile Image for Miguel.
913 reviews83 followers
July 11, 2021
A book full of sobering statistics and data on poverty in the US, with five out of six sections dealing with various aspects of poverty with quite a bit of myth breaking along the way. It’s a good compilation of data and background (along with many charts and tables), and also chapter-end extracts from other experts on the topic at hand. In the final section the author proposes a number of basic remedies none of which are highly original or path breaking, but would be great steps in the right direction if implemented (highly unlikely given current trends).
Profile Image for Chris Aldrich.
235 reviews118 followers
November 9, 2022
Some interesting material that one doesn't hear in the broader media. I had wished there would have been more solutions in the end, but honestly simply debunking the broadly held myths by itself is a tall enough order to shift the conversation.

More of the material here should be commonly known and discussed. American can definitely do a better job than sticking to the myths of our past.

I've been reading David Graeber's Bullshit Jobs at the same time as this and the two make interesting companions.
Profile Image for Jorge.
39 reviews
December 20, 2021
For those interested in a deeper understanding of the causes and myths of poverty, this book is an excellent introduction. It is written in a direct and easily understood manner. While the left-leaning views of the authors are apparent, it doesn't distract too much form the underlyingf analysis. The make an attempt to describe actions to alleviate poverty, but I found it to be the weakest part of the book.
654 reviews
May 31, 2022
Very dry, but useful book on poverty myths. Most jarring line in the book, when read in spring 2022:

"Poverty spells triggered by moving out of one's parents' house tend to be the shortest, while spells triggered by the birth of a child tend to be the longest."

On the whole, poverty is clearly a problem that can be successfully tackled, if we stop believing the myths about welfare (including that Medicare and Social Security are somehow more deserving forms of it).
69 reviews
October 3, 2021
Good overview on the leading causes of wealth inequality in America today. It also dispels the myth that poverty is namely a result of individual failure, but rather an expected outcome of a society shaped by systemic barriers and an uneven playing field.

I’m not a huge fan of the style though. It’s primarily presented as a laundry list of facts and reads like a dissertation paper.
1 review
March 5, 2025
While a greatly informative book, it is clear that the book is meant for the white moderate. There are great and important historical pieces about redlining or even the mention of slavery that could further explore the existence of poverty, particularly in the south. Nevertheless, I found many of the books statistics incredibly shocking and moving. This is a must read for all Americans.
Profile Image for Ietrio.
6,949 reviews24 followers
October 23, 2021
The arrogance of the parasitic class: the whole of ”America” gets it wrong, and it is up to them to understand it. So pay your taxes, because Rank and the gang have a whole new generation of underlings to employ all expenses paid by you.
Profile Image for Willium.
8 reviews
December 31, 2025
Hugely insightful work that really does illuminate many of the blindspots we have concerning poverty, wealth disparities, race, health, and so much more. A bit textbook-ish, but would certainly recommend to any wishing to learn more about the economic reality experienced by Americans.
Profile Image for Jane Bennington.
320 reviews3 followers
October 6, 2021
Very informative. Not for the faint of heart when it comes to academic reading. It is well written, and aimed at the lay person, but it's not light reading. Well organized and helpful.
414 reviews3 followers
November 5, 2021
Great info, and important for us all to know and act on. But a tough read!
14 reviews
November 7, 2021
Everyone should read this book. Made me aware of biases I didn't realize I had and increased my understanding of poverty.
Profile Image for Vonia.
47 reviews1 follower
March 27, 2022
A good book for a beginner but there are no life changing revelations in this book
Profile Image for Julie.
184 reviews10 followers
June 19, 2022
Very well-researched book on a critical topic for the future of our country. Grateful for folks like the authors who truly understand the issue and it's myths.
Profile Image for Manisha.
1,151 reviews6 followers
November 4, 2022
Listened to the audiobook.

This was super dense. Not a casual nonfiction read but it would be perfect if you needed to write a research paper or something.
11 reviews
Read
January 6, 2024
Great look at costs of poverty in the USA with specific estimates for various poorly considered accepted practices.
Profile Image for Pamela Okano.
559 reviews4 followers
July 31, 2024
Excellent discussion about the myths of poverty in America and some ideas of what to do about poverty.
Profile Image for Kate Richardson.
497 reviews13 followers
October 26, 2024
Not a ton of new information in here for me, but a nice summary nonetheless.
Profile Image for Mr R.
188 reviews1 follower
November 6, 2023
This reflected a lot of my currently held views rather than challenging them. So on a purely personal level I did not get a great deal from it.

It is a structured read, focusing on the structural causes of poverty and common misconceptions around them. Not the most engaging read. But through.
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