Effects of Poverty

Poverty has far-reaching and often devastating effects on individuals, families, and communities. It impacts physical and mental health, education, economic opportunities, and overall well-being. Here are some key statistics that highlight the negative consequences of poverty:

1. Health Consequences

• Higher Mortality Rates: People living in poverty are at greater risk of premature death. A 2019 study in The Lancet found that individuals living in the lowest income brackets had a significantly higher risk of dying prematurely compared to those in higher-income groups. The difference in life expectancy can be as high as 10-15 years, depending on the country and socio-economic disparities.
• Chronic Health Conditions: People in poverty are more likely to suffer from chronic health conditions such as heart disease, diabetes, and hypertension. According to the Centers for Disease Control and Prevention (CDC), adults living in poverty are 3.5 times more likely to experience poor or fair health compared to those with higher incomes. Poverty is also strongly correlated with obesity and its related complications.
• Mental Health: A study published in Psychiatric Services found that individuals living in poverty are 2-3 times more likely to experience mental health problems, including depression, anxiety, and substance abuse disorders. In fact, adults in the lowest income quintile are more than twice as likely to suffer from psychological distress than those in higher income brackets.

2. Educational Impact

• Lower Educational Attainment: Children raised in poverty are less likely to complete high school and attend college. According to The National Center for Education Statistics (NCES), 35% of children in families below the federal poverty line do not graduate from high school, compared to 17% of children from higher-income families. Additionally, only 22% of low-income students enroll in college immediately after high school, compared to 75% of their higher-income peers.
• Achievement Gaps: Low-income students perform worse on standardized tests and have lower academic achievement. A 2019 study by the National Assessment of Educational Progress (NAEP) found that 70% of fourth graders from low-income families scored below the “proficient” level in reading, compared to only 30% of students from higher-income families.
• Early Childhood Development: Children living in poverty face developmental delays. According to the Early Childhood Longitudinal Study, children from low-income families are more likely to experience cognitive delays and less likely to be school-ready by kindergarten. They are also more likely to experience behavioral problems and are less likely to participate in enrichment activities that promote learning.

3. Economic Consequences

• Income Inequality: People in poverty are less likely to escape the cycle of poverty due to systemic barriers. According to the Pew Research Center, the U.S. has one of the highest rates of income mobility among developed nations, but individuals born into the lowest income quartile have only a 12% chance of reaching the highest income quartile in adulthood.
• Unemployment: Poverty is strongly associated with higher unemployment rates. The Bureau of Labor Statistics reports that in 2020, the unemployment rate for individuals with less than a high school diploma was 12.4%, while it was only 3.5% for those with a bachelor’s degree or higher. People living in poverty often struggle to find stable employment and are more likely to work in low-wage, unstable jobs.

4. Crime and Social Consequences

• Higher Crime Rates: Poverty is a major factor contributing to crime. According to a report by the Bureau of Justice Statistics, individuals living in poverty are more likely to engage in criminal behavior. In fact, individuals in the lowest income quintile are 3-4 times more likely to be incarcerated than those in higher income brackets.
• Exposure to Violence: Poverty-stricken communities often experience higher levels of violence. The National Institute of Justice found that individuals in high-poverty neighborhoods are more likely to be victims of violent crimes. This exposure to violence can have lasting psychological effects, including trauma, PTSD, and increased likelihood of engaging in violent behavior themselves.

5. Social and Family Impact

• Child Abuse and Neglect: Families living in poverty are more likely to experience child abuse and neglect. According to the Children’s Bureau, children in families with income below the poverty line are 3-4 times more likely to be reported for child abuse or neglect compared to those in higher-income families. Economic stress can contribute to family instability, which in turn increases the risk of abuse and neglect.
• Food Insecurity: Poverty is closely linked to food insecurity. The U.S. Department of Agriculture (USDA) reports that in 2021, nearly 12% of U.S. households were food insecure, and these households were more likely to be in low-income brackets. Food insecurity not only affects nutrition but can lead to increased stress, developmental issues in children, and a higher likelihood of chronic health conditions in adults.
• Housing Instability: People in poverty often experience housing instability, including eviction and homelessness. The National Low Income Housing Coalition reports that in the U.S., there is a shortage of over 7 million affordable rental homes available to people at or below the poverty line. Housing instability can lead to displacement, poor mental health, and disruption to education and employment.

6. Intergenerational Poverty

• Cycle of Poverty: Poverty is often passed down from generation to generation. According to a study by the Brookings Institution, children born into poverty are more likely to remain in poverty as adults. A 2018 report found that 42% of children born into the lowest income quintile remained in the bottom 20% of income earners as adults. This intergenerational transmission of poverty is fueled by limited access to education, poor health, and economic instability.
• Higher Likelihood of Teen Pregnancy: Adolescent girls in poverty are more likely to experience early pregnancy. According to The Guttmacher Institute, teen pregnancy rates are significantly higher among low-income adolescents, with girls in the bottom income quintile being 2-3 times more likely to become pregnant during their teen years compared to those from higher-income families. This can further entrench poverty for both the young mother and her child.

These statistics illustrate how poverty creates a cycle of disadvantage that affects nearly every aspect of life, from health and education to employment and social stability. Without targeted interventions to break this cycle, the negative effects of poverty will continue to perpetuate across generations.

So What’s The Solution?

Knowing that poverty is at the root of many of the issues that our community faces, putting our youth in positions to earn and manage money seems to be the only plausible solution. Focusing on the CATCH Program keeps kids on track and out of trouble, and builds confidence, because they’re the ones putting in the work. We’ve created a community built on positivity where they’re encouraged by peers to be productive.