When you live long enough, you get to a point where you’ve mostly “seen it all” and after having lived five decades and met, worked and friended thousands of people, I have come to some conclusions about poverty. But before we get to that, I asked AI to give me a list of reasons for poverty.
Here is what AI thinks causes poverty:
- Lack of Education and Skills
Limited access to quality education reduces job opportunities. A lack of vocational or higher education often correlates with low-wage employment. - Unemployment and Underemployment
Inability to find a job or working part-time/temporary jobs without benefits leads to insufficient income. - Economic Inequality
Wealth and income distribution often favor the top percentage of earners, leaving others with limited access to resources and opportunities. - Systemic Discrimination
Racism, sexism, ageism, and other biases in hiring, promotion, and pay contribute to persistent poverty in marginalized groups. - Poor Health and Lack of Healthcare Access
Chronic illness or disability can prevent full-time work. Medical expenses can consume significant income, pushing people into poverty. - Inadequate Social Safety Nets
Insufficient or hard-to-access welfare programs, such as unemployment benefits, housing assistance, or child care subsidies. - Geographic Disparities
People living in rural or economically depressed areas may lack access to jobs, infrastructure, and services. - Debt and Lack of Financial Literacy
High-interest loans, credit card debt, or student loans can trap individuals in poverty. Poor financial decision-making due to lack of knowledge exacerbates money problems. - Political and Institutional Failures
Corruption, unstable governments, and poor economic policy can stunt growth and opportunities, especially in developing nations. - Intergenerational Poverty
Being born into poverty limits educational and social mobility, creating a cycle that’s difficult to break.
The one glaring thing missing, in my opinion, is mental health. The vast majority of people that I’ve met that struggle financially have mental health issues. Let me give you some examples:
A hair dresser in a small town (population 80,000) had dreams of opening a hair salon but would never do it in a large city (where it’s likely to be more successful) because big cities give her “anxiety” and she could never move there.
A physical therapist that doesn’t trust banks or brokerages and keeps most of their extra cash at home instead of invested earning interest or dividends.
A handy man that has great skills in plumbing, electrical and carpentry but won’t ever leave his rural home for higher pay or better prospects because big cities are too “liberal.”
A high earning woman who could live comfortably and have built a sizable nest egg but instead spends all of her extra money on her “looks” including plastic surgery, botox, nips and tucks, etc. The mental issue here that comes to mind is extreme narcissist.
It’s possible to overcome almost any challenge that AI listed above but the one that’s probably the hardest is to overcome your own health mental blocks.
Share The Wealth
Do you have strategies for dealing with your own mental health blocks? Let me know in the comments below.