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Most people tend to see the poor as either responsible for their own problems or victims of their circumstances. The first is known as the character flaw theory, which argues that the poor have a different culture that does not foster the positive values of hard work, accountability, and self-reliance. The opposite view is the environmental theory, which argues that poverty itself causes life problems (i.e., that poor environments cause poor outcomes, and a lack of resources leads to a lack of opportunity for the poor). Both theories are partly right and partly wrong, and both stem from the age-old nature versus nurture debate. Payne argues that this dichotomy misses a crucial point:
“Nature and nurture always work together, because what we have inherited genetically as humans is not a rigid set of behaviors, like those that send fruit flies fluttering toward a light. They are, rather, tendencies to react to changes in the environment in particular ways” (61).
In other words, we need to understand how human nature prepares us to act in rich or poor environments and high or low levels of inequality. Then we will understand why someone raised in a wealthy family thinks and acts differently than someone brought up in a poor family.
From an evolutionary standpoint, there are two things that matter: survival and reproduction. Every organism faces a tradeoff when it comes to allocating energy between these two modes. When times are good, we can adopt a long-term perspective and wait to reproduce until we can support our descendants. This is known as the slow strategy. But when times are bad and the future is uncertain, we might not live long enough to have children later, so we reproduce early and often. This is known as the fast strategy. This is not a conscious choice; rather, we are the descendants of those who were good at toggling between the slow strategy when times were good and the fast strategy when times were bad.
The effects of this fast-slow tradeoff go beyond reproduction, and many of the most important implications have to do with money. Consider the tradeoff between going to college and hoping for a higher income later or taking a job that guarantees an income now. Similarly, our subjective feelings of affluence or poverty can make us more or less shortsighted. When people are made to feel poor, they engage in riskier behavior, take what they can get immediately, and ignore the future. This is not just applicable to people raised in poor environments; “even the mere subjective feeling of being less well-off than others was sufficient to trigger the live fast, die young approach to life” (70). In other words, when we feel poor, we act poor.
A corollary to the “live fast, die young” approach to life is the “nothing to lose” theory, which states that the amount of risk an organism is willing to take depends on how needy it is. The needier someone is, the more likely they are to take risks, and this explains why humans often behave irrationally from an economic perspective if they feel they have unmet needs. And because we constantly judge what we need by making comparisons to others, rising inequality makes people feel that they need more, which leads to riskier and poorer choices regardless of class status. Furthermore, by causing riskier behavior, inequality leads to even greater inequality as the haves make prudent decisions while the have-nots make poor ones.
The average person, put in different situations, will behave very differently. People in highly unequal places will make worse decisions and have poorer outcomes than those in more equal places, even if those two places have the same average income. Importantly, this happens regardless of the personal characteristics of that person.
Psychologists have found that the political left and the right differ from each other in two fundamental ways. First, conservatives want to preserve tradition and the status quo while liberals favor changes in society. Conservatives believe that a society in chaos is the worst possible outcome, and that civil order is difficult to achieve, and so we should preserve order and tradition even if that means missing out on opportunities to improve society. In contrast, liberals believe that some aspects of society work well and others poorly, and so we should change the dysfunctional things because we can use the power of reason to find rational solutions to problems.
The second fundamental difference is the willingness to accept inequality. Conservatives view it as the natural outcome of a world where some individuals are better than others, while liberals see individual merit as just one factor among many determining success or failure. Both agree that both individual talent and context matter, but conservatives emphasize the former and liberals the latter. However, both are oversimplifications because inequality affects our behavior in ways that cause even greater inequality.
We think that our political beliefs are a stable set of principles based on logic and facts, but in reality, “they are more like an assortment of tools that we choose among depending on the demands of a particular moment” (89). This is partly because our ideological principles depend on what we have thought about or seen recently, which is what psychologists call accessibility. It is also because we do not track the logical consistency of our thoughts the way we think we do; the reasons we articulate to explain our decisions are not always the real reasons we made those decisions. In sum:
“Sometimes we think through an issue based on our principles and end up at an ideological conclusion. At other times we take our cues from a particular situation and find an ideology that fits the moment. When we reflect on our own beliefs, it can be nearly impossible to tell the difference between the two” (94).
Of all the cues that nudge us left or right, the role of wealth, poverty, and inequality is one of the most vexing. Many argue that the poor seem to vote against their own self-interest, such as by supporting leaders who cut taxes on the wealthy while eliminating social programs because conservative leaders rile up the poor with cultural issues. But not only is this account wrong, it’s completely backward: the higher a person’s income, the more likely they are the vote Republican, and vice versa. And the further we move away from political issues, the more our images of liberals and conservatives turn into misleading stereotypes.
People tend to vote for policies that they feel are in their interest, whether they actually are or not. And what feels to be in their self-interest depends on how they compare themselves to others. As inequality worsens, these comparisons have more of an effect; “[t]aken together, these observations suggest that the rise in inequality that has occurred over the past few decades might be contributing to increasingly intense partisanship and political conflict” (104). This is because we tend to think that those who agree with us are brilliant, while those with whom we disagree are idiots, because we believe that we see the world accurately. And so, if the ultrawealthy minority grows further and further above the poor and middle class, their political opinions will change, they will mistake their rational self-interest for universal principles, and they will think that anyone who disagrees with them is stupid and not worth compromising with. Furthermore, “feeling superior in status” (110) makes us more likely to believe we see reality as it is and that our opponents are mistaken. And so as inequality increases, politics becomes more divisive. Payne cautions against these trends, “because when opponents become enemies, people can justify almost anything in responding to them. After all, how can you expect to reason with maniacs?” (112).
There are several reasons why poverty is bad for health, such as poor access to proper food, medical care, safe living conditions, and sanitation. Similarly, data shows that the more money you have, the better your health and the longer your life expectancy. But when you compare countries to one another, increases in average income stop affecting health incomes once a country reaches a certain level of economic development. However, within rich countries themselves, the relationship between health and wealth remains linear—more money means better health. Other studies have shown that “where people place themselves on the Status Ladder is a better predictor of health than their actual income or education” (117). Taken together, this means that societies with greater inequality have poorer health outcomes, even when we control for income.
How something as abstract as inequality or social comparison causes physical health problems lies through specific maladies, particularly heart disease, cancer, diabetes, and obesity. Unhealthy behavior and poor decision-making, discussed in Chapter 4, explains about a third of the relationship between inequality and health. The rest is explained by how our bodies respond to crisis, particularly our stress response system, which is designed to save us in the near term during a crisis, even if it shortens our lives by releasing a large amount of energy in response to a perceived threat or opportunity. However, the stress response system does not create new energy, it only diverts it from somewhere else by shutting down other body functions and putting great strain on our bodies. This stress response kicks when there is an actual threat and when we feel there is a threat. Unlike animals, our stress response can last for years at a time. When this stress response system doesn’t shut off properly, it raises the risk of diabetes, obesity, cardiovascular disease, heart disease, and depression. For our ancient ancestors, the downsides of the stress response system were massively outweighed by its benefits, but in our modern environment, the effects of stress are much more harmful than the threats it evolved to protect us from.
Because stress is the body’s way of focusing on an immediate crisis at the expense of long-term health, it is not surprising that economic hardship and low social status can trigger the stress response. Studies have shown that people with lower incomes tend to have higher levels of stress hormones and that those with lower social status have much stronger stress responses to external stressors. The pathway that leads from our subjective rating of status to stress hormones is controlled by the brain’s frontal cortex, which is activated when people think about the thoughts and perspectives of others. In other words, people responded to a low rank in the social hierarchy as if it were a physical threat. When we feel we have nothing, “even the cells in our body start demanding to take what they need now and worry about the future later. Inequality accelerates this process by making everyone less secure” (133).
In this section Payne examines a number of inequality’s specific impacts. Key to understanding this section is Payne’s argument, drawn from psychological research, that people act differently in different environments rather than acting consistently, as we often believe. Payne argues that people will respond to the same event differently whether or not they live in a rich or poor environment, or more importantly, an environment with either high or low inequality. Payne also shows that there are poorer outcomes in environments with high inequality than those with low inequality, even if the actual level of wealth is the same. Higher inequality leads to riskier behavior, more political partisanship, and worse health outcomes regardless of wealth. In each case, Payne argues that this is why the highly unequal United States, despite being the richest and most powerful country on the planet, has many features in common with developing countries.
A common element here is the distinction between how those on the left and those on the right understand inequality, and the negative effects generated by inequality. Those on the left tend to focus on environmental or situational factors that cause poverty and trap people in cycles of poverty. They are also less willing to accept inequality as a natural state of affairs and more likely to be willing to change the status quo, believing that the power of human reason can fix faults in society. On the other hand, those on the right believe that the poor are so because of inherent character flaws and because they did not learn the middle-class values of hard work and responsibility. They are more likely to accept inequality as a natural outcome stemming from different levels of individual talent and are generally unwilling to change the status quo, believing that the risk of returning to societal disorder is not worth any potential improvements. Although these two types of thinking tend to structure our political debates, Payne argues that things are not as clear cut as we like to think. We tend to believe our political thinking results from our stable set of political beliefs, but in reality, our moment-to-moment thinking is often driven by the subconscious subjective comparisons we frequently engage in. In reality, our thinking, decision-making, and health are determined to a large degree by the environment that we are in, and the same person will act (and react) in very different ways depending on their situation. Higher-inequality environments lead to riskier decision-making, nudge us further toward political extremes, and cause more health problems. The steady rise of inequality in America over the last 50 years explains why poor Americans are making worse decisions that trap them in poverty, why political partisanship has increased, and why there is a health crisis.
Payne also returns to the theme of the mismatch between our evolutionary past and our modern environment. Specifically, he singles out how our stress response system translates an abstract sociological concept, inequality, into concrete biological outcomes. The stress response system is our body’s way of dealing with short-term crises at the expense of longer-term health. While this was a net positive for our evolutionary ancestors, the drawbacks of stress now far outweigh any potential benefits in our secure modern environment. Furthermore, inequality worsens the negative impacts of our stress response system because simply perceiving differences in status causes us stress and negatively impacts our health.
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