Poverty, by America Book Summary - Poverty, by America Book explained in key points
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Poverty, by America summary

Matthew Desmond

Discover the Shocking Truth with This New York Times Bestseller

3.8 (179 ratings)
18 mins

Brief summary

Poverty, by America by Matthew Desmond exposes the harsh realities of poverty in America through compelling stories of real individuals. It sheds light on the systemic issues that perpetuate inequality and offers potential solutions for change.

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    Poverty, by America
    Summary of 5 key ideas

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    End the exploitation of workers

    If you think of worker exploitation, what comes to mind? Child laborers from former times, perhaps, or factory personnel in inhumane conditions? In some places, these atrocities still exist. But there are also modern-day versions of labor exploitation that many people are unaware of. 

    Firstly, there’s low wages. When you account for inflation, the wages earned by most Americans today are nearly the same as they were four decades ago. In fact, the annual increase in inflation-adjusted wages since 1979 has barely scratched the surface, edging up by a mere 0.3 percent. Even in 2020, at least one million workers were compensated with hourly wages that sat at or below the minimum of $7.25. 

    Unfortunately, corporations are reluctant to initiate wage increases themselves, fearing that increased labor costs might impact profits and, subsequently, their market value. To tackle this, Congress should take matters into its own hands. It needs to raise the minimum wage and prioritize it in the same way that it prioritized workplace safety regulations. 

    However, it's crucial that the minimum wage is also reviewed and adjusted regularly, to keep pace with economic changes. Rather than depending exclusively on Congress, the authority to set the minimum wage should be delegated to the central government or a specifically appointed individual, such as the Secretary of Labor. Another more favorable strategy could involve empowering employees and employers to jointly negotiate and amend the minimum wage through collaborative bargaining agreements. 

    In addition to the concern over inadequate wages, temporary work also impacts economic well-being. Using temp agencies to fulfill their manpower requirements allows corporations to reduce their obligations to workers and increase their cost savings. For instance, tech company Apple boasts a global workforce of approximately 750,000 individuals. But a mere 63,000 of these are directly employed by the company itself. 

    Being an independent contractor or temp worker impacts an individual’s work benefits and compensation. These workers aren’t covered by employee benefits and minimum wage laws. They don’t get sick days, overtime pay, or even unemployment insurance. Additionally, temp workers can’t pursue promotions because they aren’t employed by the company in the first place. 

    How can independent contractors have a voice then? The answer lies in union power. Historically, unions have been instrumental in advocating for fair working conditions and compensation. Regrettably, organized labor saw its downfall in the early 1980s, when corporations realized they could easily onboard new hires to replace unionized workers who went on strike. Employers continue to obstruct unions today, threatening workers with business closure and job loss, and leaving a significant 94 percent of private sector workers without union representation.

    Implementing new labor laws that streamline the process of organizing and promoting sectoral bargaining would address these disparities. An approach like this aims to organize workers not only within a single store or company but also across an entire sector. By doing so, a broader range of workers – encompassing both independent contractors and full-time employees – can gain empowerment.

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    What is Poverty, by America about?

    Poverty, by America (2023) delves into the paradoxical issue of poverty in the abundant country of the United States. It explores potential solutions to this pervasive issue, based on extensive research.

    Poverty, by America Review

    Poverty, by America (2021) is an eye-opening exploration of poverty in the United States that everyone should read. Here's what makes this book unique and compelling:

    • With meticulous research and firsthand accounts, it sheds light on the harsh realities of poverty, making it impossible to turn a blind eye.
    • The book uncovers the systemic issues that contribute to poverty, challenging the prevailing narratives and providing a deeper understanding of the problem.
    • Through compelling storytelling, it humanizes the individuals experiencing poverty, evoking empathy and prompting readers to consider potential solutions.

    Who should read Poverty, by America?

    • Poverty abolitionists
    • Lawmakers
    • Corporate leaders and shareholders

    About the Author

    Matthew Desmond is a sociology professor at Princeton University. He is also the author of the award-winning and New York Times bestseller Evicted (2016). 

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    Poverty, by America FAQs 

    What is the main message of Poverty, by America?

    The main message of Poverty, by America is a deep exploration of the systemic issues behind poverty in the United States.

    How long does it take to read Poverty, by America?

    The reading time for Poverty, by America varies depending on the reader's speed, but it typically takes several hours. However, the Blinkist summary can be read in just 15 minutes.

    Is Poverty, by America a good book? Is it worth reading?

    Poverty, by America is a thought-provoking read that sheds light on the complex issue of poverty. It offers valuable insights and is definitely worth reading.

    Who is the author of Poverty, by America?

    Matthew Desmond is the author of Poverty, by America.

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