Humanity House
The scarcity mindset is the belief that there will never be enough. The result of the scarcity mindset is that your actions and decisions are made from a place of want.
People in poverty are told theyre in poverty because they make poor decisions, when the actual fact is poor decisions are made because people in poverty live with a scarcity mindset.
Scarcity changes our choices, behaviors and feelings. What we would normally do if we had an abundance, we dont do when our resources are scarce. One study found that people living or put into a poverty situation, when tested, had an IQ drop of anywhere from 10-15 points. Once they were put in a position of abundance, their IQ points returned.
One way to understand the poor choices a person in poverty makes is to think about the human brain as having bandwidth. Living in poverty reduces the bandwidth of your brain. So much of your thinking is used up in trying to figure out ways to survive that clear, precise thinking and problem solving goes out the window.
The person isnt poor because they are making bad decisions. It is the poverty that is reducing their capacity to see the whole situation, put things into perspective, and compartmentalize issues, thus making problems solvable.
For example, when you are hungry, all you can think about is food. That is your main concern. You get tunnel vision so all of your thoughts are concentrated on food and obtaining it. People who live in poverty spend lots of time worrying about their lack of food, so decisions regarding other parts of their life take a back seat.
If we want to have a society that is filled with people who have good decision-making abilities and who are more productive, have children who are better equipped at school, and who develop the skill of being self sufficient, one program that was been successful is a universal or basic income for everyone. This has taken place in many cities all over the world. Right now Chicago is thinking about putting this into play.
What they have found is that the scarcity mindset goes away. People are able to think more clearly. They are able to budget, see how to save money, reduce the stress of knowing if there will be food, utilities, medicine, and clean clothing. Their children also benefit from the reduction of the stress that comes with poverty possibly the only example of trickle-down economics actually working giving them more bandwidth for schoolwork, friendships, and play.
Of course there are those who would be up in arms about people receiving a basic income. But before you become one of them, think about a family that you know who struggles through life in poverty. Then think about what changes might occur for them if they knew that every month they would have a basic income that they would receive on top of any salaries that they already had. It would mean the difference between working an $8/hour job for 30 hours every week and bringing home $850 a month, putting them automatically in scarcity mode, or they work their job and know that they have $1,850 a month to live on. The good that it does for so many outweighs any of the bad that a few might do.
Once impulse control is restored, stress is reduced and focus is given back to the entire picture, the person can see opportunities that are in front of them instead of hyperfocusing on their immediate needs.
Obviously, universal basic income is a long way off, so in the meantime, remember that people in poverty are not there because they make poor decisions. Understand that the poor decisions come because they are living in poverty. If we stop the blame game, everyone will be happier, including you. Kindness matters!
