POVERTY, BY AMERICA (audiobook) by Matthew Desmond
Read by Dion Graham.
Duration: 5 hours, 40 minutes.
Unabridged.
As of the day I am writing this review, 7 of the top 10 richest people in the world live in the United States (the least wealthy has $80 billion.) The rate continues on when you go down the list - 14 of the top 20 live in the United States.
The United States has 650 billionaires.
But, the official poverty rate in the United States at this moment is 11.5% - the highest rate in the in the leading industrialized economies of the world. This chart shows that it has bounced around between 10.5% and 15%, depending on the economic recessions and the like for the last 30 years. During this entire time, the United States has been the leader in wealth creation for the entire planet.
Sociology professor Matthew Desmond set out to find out why.
It's easy to look at those billionaires and note that they don't pay their fair share. The tax code is tailor made to keep them rich. There are deductions and accounting tricks that people who make less than a million dollars a year cannot imagine.
But, Desmond notes that people who make less than a million dollars a year take advantage of deductions and accounting tricks that people living in poverty can ever imagine taking.
For example, in my state (Indiana) there is a 20% state income credit for every dollar placed in a 529 college savings account. The growth in value is not taxed and for every dollar you put in up to $7,500 you get 20 cents back. Put in the full amount, that state gives you $1,500. Show me a family of four living at the poverty line ($30,000 in 2023 according to this chart) that has an extra $7,500 - or even $500 - sitting around to invest in a college savings account.
Poor people can receive rent subsidies - if there are enough funds and enough spots available. But everyone with a mortgage receives a mortgage subsidy by being able to write off the mortgage interest. That subsidy has no practical limit. You can get it for financing a tiny home in rural Arkansas or a penthouse condo that looks over Central Park in NYC. That adds up to billions upon billions of dollars every year.
Desmond goes on like this to demonstrate that the system is almost like an inverse pyramid - the higher up you go the more perks and discounts and breaks you get. And, at the bottom, there's some perks - but nothing like you get at the top where some people (like our 45th President) don't even pay federal income taxes some years. Former President Trump paid no taxes in 2020 and only $750 in 2017 and 2018. From 2015-2020 he paid $1.8 million in taxes, which is a lot, but he claims to be a billionaire. A billion is 1,000 million dollars, so he paid about 2/1,000 of his total wealth. I know I paid more than 2/1,000 of my total wealth in my combined federal income taxes for those six years.
The United States has 650 billionaires.
But, the official poverty rate in the United States at this moment is 11.5% - the highest rate in the in the leading industrialized economies of the world. This chart shows that it has bounced around between 10.5% and 15%, depending on the economic recessions and the like for the last 30 years. During this entire time, the United States has been the leader in wealth creation for the entire planet.
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| The author, Matthew Desmond |
It's easy to look at those billionaires and note that they don't pay their fair share. The tax code is tailor made to keep them rich. There are deductions and accounting tricks that people who make less than a million dollars a year cannot imagine.
But, Desmond notes that people who make less than a million dollars a year take advantage of deductions and accounting tricks that people living in poverty can ever imagine taking.
For example, in my state (Indiana) there is a 20% state income credit for every dollar placed in a 529 college savings account. The growth in value is not taxed and for every dollar you put in up to $7,500 you get 20 cents back. Put in the full amount, that state gives you $1,500. Show me a family of four living at the poverty line ($30,000 in 2023 according to this chart) that has an extra $7,500 - or even $500 - sitting around to invest in a college savings account.
Poor people can receive rent subsidies - if there are enough funds and enough spots available. But everyone with a mortgage receives a mortgage subsidy by being able to write off the mortgage interest. That subsidy has no practical limit. You can get it for financing a tiny home in rural Arkansas or a penthouse condo that looks over Central Park in NYC. That adds up to billions upon billions of dollars every year.
Desmond goes on like this to demonstrate that the system is almost like an inverse pyramid - the higher up you go the more perks and discounts and breaks you get. And, at the bottom, there's some perks - but nothing like you get at the top where some people (like our 45th President) don't even pay federal income taxes some years. Former President Trump paid no taxes in 2020 and only $750 in 2017 and 2018. From 2015-2020 he paid $1.8 million in taxes, which is a lot, but he claims to be a billionaire. A billion is 1,000 million dollars, so he paid about 2/1,000 of his total wealth. I know I paid more than 2/1,000 of my total wealth in my combined federal income taxes for those six years.
Desmond goes on with other things. For example, you can get approved to pay a $1,700/month rent so much easier than to pay a $1,200/month mortgage on the same property. Profit margins on rentals are the highest in poor neighborhoods - even after factoring in things like more maintenance on the (typically) older homes in poorer neighborhoods.
The audiobook was read by Dion Graham who is simply one of the best audiobook readers on the scene right now.
The audiobook was read by Dion Graham who is simply one of the best audiobook readers on the scene right now.
I rate this audiobook 5 stars out of 5. It will certainly give you plenty to think about. It can be found on Amazon.com here: Poverty by America by Matthew Desmond.
This article from NPR does a very good job of reviewing this book as well.
This article from NPR does a very good job of reviewing this book as well.
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