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Poverty And Poverty

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Background: Poor people tend to behave in ways such that the conditions of poverty are reinforced. Numerous studies have studied the effects of poverty, and they show that the poor are more likely to commit crimes, use more alcohol and drugs, borrow more money, save less money, and smoke more (Liska & Chamlin, 1984; Lynch et al, 1997). Furthermore, prior research has established that scarcity of money or time can lead people to make poor decisions (Mani et al, 2013; Shah et al, 2013). When faced with similar financial demands the rich and poor can react differently and have different cognitive impacts. In experiments conducted by Mani et al (2013) in a typical American mall, shoppers were stopped to ask what they would do if they had to pay to get their car fixed, and were presented with a less expensive or more expensive repair job. The participants were then subjected to a series of cognitive tests. In the case of the less expensive repairs, people with a low income scored about the same as those with a high income. However, when encountered with an expensive repair job, poor people scored significantly lower. Here, it was found that the mere thought of a major financial setback impaired their cognitive ability (Mani et al, 2013). The behaviors of poor individuals such as borrowing more, committing more crimes, more alcohol use etc., have something in common; these behaviors focus on the present problems and neglect the future problems. Therefore, it seems that the poor

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