causes of poverty, economics, poverty

The Causes of Poverty (78): High Discount Rates and Lack of Delayed Gratification

grasshopper & ants

(source)

You talk to conservatives about the reasons why poor people are poor, and chances are that the discussion turns to lack of self-control, high discount rates and inability to delay gratification. “High discount rates” means that things in the present or near future are viewed as having a higher payoff than things in the distant future. If you have a high discount rate, you focus on immediate gratification. This in turn shows up in low savings rates, high debt, obesity, teen pregnancy, drug use, high drop out rates, low school attendance and other vices supposedly common among the poor.

Some even argue that differences between people in the apparent levels of self-control, discount rates or time preferences – which is all the same thing – appear at a very early age and are therefore probably innate. The famous marshmallow test will then get a favorable citation: you give kids a marshmallow and tell them they can either eat it now or, if they wait a few minutes, have two marshmallows. Kids who wait do better later in life.

However, recent studies have suggested that the marshmallow test does not, in fact, reveal innate (in)ability. The environment in which tests such as these take place determines to a large extent the levels of self-control revealed through them. Whether or not people are capable of delayed gratification depends not on their abilities but on their assessment of the reliability of the world around them. When the world is not worthy of trust, the best course of action is often to live for today.

This attitude towards the world and the future is probably internalized from a young age onward, which makes it hard to change. What it takes is to offer young children a reliable environment allowing them to develop levels of trust which will in turn yield low discount rates and the ability to delay gratification later in life. But in order to do that we’ll need to reduce parental poverty. Claims about lack of self-control as a cause of poverty then have things completely backward. Rather than a cause we’re dealing with an effect of poverty.

More posts in this series are here.

Standard
causes of poverty, economics, poverty

The Causes of Poverty (71): Poverty of Willpower and of Self-Control, Revisited

marshmallow test

(source)

Almost as old as the problem of poverty itself is the story that poverty is caused by insufficient self-control and willpower. Never mind that things may just as well be the other way around: poverty drains the will. And never mind that the most famous study cited by proponents of the willpower story is apparently misleading:

For the past four decades, the “marshmallow test” has served as a classic experimental measure of children’s self-control: will a preschooler eat one of the fluffy white confections now or hold out for two later? … The research … began at Stanford University in the late 1960s. Walter Mischel and other researchers famously showed that individual differences in the ability to delay gratification on this simple task correlated strongly with success in later life. Longer wait times as a child were linked years later to higher SAT scores, less substance abuse, and parental reports of better social skills.

Because of the surprising correlation, the landmark marshmallow studies have been cited as evidence that qualities like self-control or emotional intelligence in general may be more important to navigating life successfully than more traditional measures of intelligence, such as IQ.

The Rochester team wanted to explore more closely why some preschoolers are able to resist the marshmallow while others succumb to licking, nibbling, and eventually swallowing the sugary treat. The researchers assigned 28 three- to five-year-olds to two contrasting environments: unreliable and reliable. The study results were so strong that a larger sample group was not required…

Children who experienced unreliable interactions with an experimenter waited for a mean time of three minutes and two seconds on the subsequent marshmallow task, while youngsters who experienced reliable interactions held out for 12 minutes and two seconds. Only one of the 14 children in the unreliable group waited the full 15 minutes, compared to nine children in the reliable condition.

“I was astounded that the effect was so large,” says Aslin. ” … You don’t see effects like this very often.” …

The findings, says Kidd, are reassuring. She recalls reading about the predictive power of these earlier experiments years ago and finding it “depressing.” At the time she was volunteering at a homeless shelter for families in Santa Ana, California. “There were lots of kids staying there with their families. Everyone shared one big area, so keeping personal possessions safe was difficult,” she says. “When one child got a toy or treat, there was a real risk of a bigger, faster kid taking it away. I read about these studies and I thought, ‘All of these kids would eat the marshmallow right away.’ “

But as she observed the children week after week, she began to question the task as a marker of innate ability alone. “If you are used to getting things taken away from you, not waiting is the rational choice. Then it occurred to me that the marshmallow task might be correlated with something else that the child already knows—like having a stable environment.” (source, source)

More posts in this series are here.

Standard