5.2 Poverty and economic inequality

Poverty and economic inequality are major risk factors for violence in communities. These issues create chronic stressors, limit opportunities, and weaken social controls that prevent crime. Studies show areas with high poverty rates have higher rates of violent offenses like assault and homicide.

Economic inequality fuels violence by eroding social cohesion and trust. Countries with larger income gaps tend to have more violence. Inequality breeds resentment and hopelessness while reducing upward mobility. This can motivate crime as an alternative path to resources and status.

Poverty and Violence

Defining Poverty and Its Prevalence

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• Poverty is defined as the state of lacking sufficient financial resources to meet basic needs for food, clothing, and shelter
• The poverty threshold is the minimum level of income deemed adequate in a particular country
• Poverty is a widespread issue, affecting a significant portion of the global population
• In the United States, the official poverty rate in 2020 was 11.4%, meaning over 37 million people lived in poverty

Poverty as a Risk Factor for Violence

• Poverty is correlated with higher rates of violent crime
• Studies show that areas with high poverty rates tend to have higher rates of assault, robbery, and homicide compared to more affluent areas
• Poverty can lead to stressors like unemployment, food and housing insecurity, and lack of access to education and health care
• These chronic stressors are risk factors that increase the likelihood of violence
• Poverty is associated with neighborhood disadvantage, characterized by high population density, residential instability, family disruption, and low social cohesion
• These factors weaken informal social controls that help prevent violence

Impact of Poverty on Children and Future Violence

• Children raised in poverty are more likely to experience adverse childhood experiences (ACEs) like abuse, neglect, and household dysfunction
• Exposure to ACEs is a strong predictor of future violence perpetration and victimization
• Poverty can limit access to quality education, health care, and social services for children
• Poor nutrition, environmental toxins, and chronic stress associated with poverty can negatively impact child development
• These early life disadvantages can set the stage for a cycle of poverty and violence across generations

Economic Inequality and Violence

Measuring Economic Inequality

• Economic inequality refers to the uneven distribution of income, assets and opportunities between different groups in society
• It is typically measured using the Gini coefficient, which ranges from 0 (perfect equality) to 1 (perfect inequality)
• In 2020, the Gini coefficient for income inequality in the U.S. was 0.489, one of the highest levels among developed countries
• Other measures of economic inequality include the income share of the top 1%, wealth concentration, and the ratio of CEO-to-worker pay

Economic Inequality as a Driver of Violence

• High levels of economic inequality are linked to increased rates of violent crime
• Countries and communities with greater income gaps between rich and poor tend to have more violence
• Economic inequality erodes social cohesion and trust, which are protective factors against violence
• Inequality breeds feelings of resentment, hopelessness and alienation among disadvantaged groups
• Inequality reduces upward economic mobility and access to quality education and employment for low-income populations
• This limits opportunities to escape poverty and can fuel frustration and social unrest

Inequality, Public Goods, and Crime Incentives

• Economically unequal societies invest less in public goods and social programs that help buffer against the stresses of poverty
• This lack of a social safety net leaves vulnerable groups without support
• Underinvestment in education, health care, and community resources can exacerbate the risk factors for violence
• Income inequality incentivizes crime as a means of obtaining resources and status
• The perception of unfairness and relative deprivation can motivate individuals to pursue crime as an alternative path
• High inequality can also lead to more punitive approaches to crime, rather than addressing root causes

Social Welfare and Violence

Types and Goals of Social Welfare Programs

• Social welfare programs are government initiatives designed to protect vulnerable populations and ensure access to basic needs
• Examples include housing assistance (Section 8 vouchers), nutrition programs (SNAP/food stamps), health insurance (Medicaid), and income support (TANF)
• These programs aim to alleviate poverty, reduce inequality, and promote stability and well-being
• Social welfare is based on the idea that society has a responsibility to care for its most vulnerable members

Welfare Programs and Violent Crime Reduction

• Empirical research shows that social welfare spending is associated with reductions in violent crime
• U.S. states that spend more on welfare have lower homicide rates, controlling for other factors
• Welfare programs alleviate the acute economic stressors that can precipitate violence, such as inability to afford food, housing, and medical care
• They provide a buffer against material hardship and deprivation
• Programs like housing vouchers allow low-income families to relocate to safer neighborhoods with more resources and opportunities
• This disrupts the cycle of concentrated poverty that can fuel violence

Welfare Critics and Program Effectiveness

• Critics argue that welfare programs disincentivize work and create dependency
• However, research shows that when coupled with job training and placement, welfare does not reduce employment
• Access to health care services through Medicaid or other programs enables treatment for mental illness and substance abuse which are risk factors for violence perpetration and victimization
• While not a panacea, a robust social safety net is an important tool for addressing the economic drivers of violence
• To be most effective, welfare programs must be adequately funded, efficiently administered, and connected to other social services

Strategies for Addressing Economic Risk Factors

Minimum and Living Wage Laws

• Minimum wage laws mandate a base level of pay for workers
• Research indicates that higher minimum wages are associated with lower rates of violent crime, as they improve the economic security of low-wage workers
• However, the federal minimum wage of $7.25 has not increased since 2009 and has failed to keep pace with inflation
• Living wage ordinances go beyond the minimum wage to ensure that full-time workers earn enough to meet a basic standard of living for their area
• These laws aim to reduce working poverty as a driver of crime and promote self-sufficiency

Income Supports and Tax Credits

• Earned Income Tax Credits (EITC) provide tax refunds to boost the incomes of low-wage workers
• Studies show that EITC expansions are linked to reductions in violent crime, child abuse and intimate partner violence
• The Child Tax Credit (CTC) provides additional support to low and middle-income families with children
• During the COVID-19 pandemic, the U.S. expanded the CTC and delivered it monthly, lifting millions of children out of poverty
• These types of direct cash transfers give families flexibility to meet their specific needs and have been shown to improve child well-being and reduce financial stress

Place-Based Initiatives and Community Investment

• Place-based initiatives target investment, resources and services to high-poverty neighborhoods
• Programs like Promise Zones and Choice Neighborhoods aim to comprehensively address the economic and social determinants of violence
• They involve partnerships between government, non-profits, and private sector to improve housing, education, job access, and public safety
• Community development financial institutions (CDFIs) provide access to capital and financial services in underserved markets
• These initiatives aim to build community wealth, resilience, and social cohesion as protective factors against violence

Workforce Development and Restorative Justice

• Job training and placement programs provide skills and connect the chronically unemployed to work opportunities
• Participation is correlated with reduced recidivism among former offenders
• Ban the Box policies remove conviction history questions from job applications to reduce hiring discrimination
• Restorative justice models, such as offender-victim mediation, allow offenders to make amends and develop empathy
• These programs show promise for reducing violent re-offending, possibly by improving future economic prospects
• Connecting at-risk individuals to economic opportunity and pro-social relationships can disrupt cycles of violence