Some of the poor are victims of bad luck. That’s not something which is sufficiently understood. Agreed, others dig their own grave or get their graves dug by crooked capitalists, unfair international rules, overly optimistic financial institutions causing a global economic crisis, heartless politicians etc. However, there are cases in which the link between someone’s actions or intentions – self-regarding or other-regarding – and someone’s poverty is very weak indeed and in which it’s better to say that it’s a good dose of bad luck that drives people over the brink. And I’m not just thinking about the guy losing his job because of illness or accident.
The data are very clear. In essence, if you have the bad luck of being
- a small person
- a black person
- a woman (especially a single mother)
- an adoptee
- a less than beautiful person
- an obese person
- or a combination of any or all of these largely unchosen and uninflicted characteristics
then you’ll earn less, sometimes a lot less than average, and you’ll run a higher risk of becoming poor.
Maybe you would reply that people with some of these characteristics don’t earn less because they had the bad luck of being born like that – e.g. black, female, short etc. – but because employers are racist or prejudiced against women or short people. True, but not always. Poverty rates among blacks in the U.S. are a lot higher than average, but only part of this gap can be explained by racist employers. Other parts of the explanation, such as education levels, statistical discrimination etc., can’t be linked immediately or exclusively to racial bias.
Or maybe you would reply that some people have themselves to blame for some of their harmful characteristics, e.g. being obese or a single mother. That, in other words, these characteristics are chosen and self-inflicted and not a matter of bad luck. That is also only partly true. Obesity can be genetically determined, and single parenthood can be the result of misguided policies such as the war on drugs.
More posts in this series are here.