INDIA-FOOD-POVERTY-LAW
The Harvard project studied two very different groups: shoppers in a New Jersey mall and sugar cane farmers in rural India. Above, Indian laborers carry wheat at a storage facility on the outskirts of Amritsar. (Narinder Nanu / AFPGetty Images / August 27, 2013)


Whether you're a New Jersey mall rat or a farmer in India, being poor can sap your smarts. In fact, the mental energy required to make do with scarce resources taxes the brain so much that it can perpetuate the cycle of poverty, new research shows.
The findings, published in Friday's edition of the journal Science, indicate that an urgent need — making rent, getting money for food — tugs at the attention so much that it can reduce the brainpower of anyone who experiences it, regardless of innate intelligence or personality. As a result, many social welfare programs set up to help the poor could backfire by adding more complexity to their lives.
"I think it's a game changer," said Kathleen Vohs, a behavioral scientist at the University of Minnesota's Carlson School of Management, who wasn't involved with the study.
There's a widespread tendency to assume that poor people don't have money because they are lazy, unmotivated or just not that sharp, said study coauthor Sendhil Mullainathan, a behavioral economist at Harvard University.
"That's a broad narrative that's pretty common," Mullainathan said. "Our intuition was quite different: It's not that poor people are any different than rich people, but that being poor in itself has an effect."
The problem is that it's hard to devise experiments to test this, said Eric J. Johnson, a psychologist at the Columbia Business School who was not involved in the study.
"In general, you can't randomly assign people to be poor," Johnson said.
Instead, Mullainathan has studied some of the specific consequences of being poor. Last year, he and his colleagues published work in Science showing that when people are forced to focus on a pressing financial problem like a looming utility bill, they develop tunnel vision and ignore their long-term goals.
For this new paper, the researchers wanted to find out how those psychologically draining situations affected their overall brainpower.
To do so, Mullainathan and his colleagues performed two very different studies on two very different groups of people — shoppers in a New Jersey mall and sugar cane farmers in rural India.
The shoppers were divided into groups designated as rich or poor based on their incomes. The researchers prompted them to consider their financial situations by asking them how they would pay for an unexpected car repair.
For half the subjects, the hypothetical bill was $150, a relatively low amount. For the other half, it was $1,500 — enough to make a person of modest means do some mental arithmetic.