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Michigan WORKS! > Poverty Reduction Initiative > Understanding Poverty

Understanding Poverty

Although the federal government defines poverty by income, the reasons for a poverty situation are many. For some, poverty evolves over time and for others, poverty is more sudden—resulting from the loss of health or employment.


In August, 2004, national poverty expert Ruby Payne (author of A Framework for Understanding Poverty) spoke to 1,100 people in Traverse City about issues related to poverty—energizing the audience with her dynamic presentation and keen insights. One of those insights was related to the issue of resources.


Her working definition of poverty is “the extent to which an individual does without resources,” and she lists those necessary resources:

  • Financial: Having the money to purchase goods and services.

  • Emotional: Being able to choose and control emotional responses, particularly to negative situations, without engaging in self-destructive behavior. This is an internal resource and shows itself through stamina, perseverance, and choices.

  • Mental: Having the mental abilities and acquired skills (reading, writing, computing) to deal with daily life.

  • Spiritual: Believing in divine purpose and guidance.

  • Physical: Having physical health and mobility.

  • Support Systems: Having friends, family, and backup resources available to access in times of need.

  • Relationships/Role Models: Having frequent access to adult(s) who are appropriate, who are nurturing to the child, and who do not engage in self-destructive behavior.

  • Knowledge of Hidden Rules: Knowing the unspoken cues and habits of a group.

This page last updated on 4/28/2008.
In accordance with the Americans for Disabilities Act (ADA), the information in this site is available in an alternative format upon request received by this office. Michigan relay number for the deaf: (800) 649-3777. Equal Opportunity Employer/Program.

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“I came to realize there were major differences between generational poverty and middle class—and that the biggest
differences were not about money.”

—Dr. Ruby Payne
Author of A Framework for Understanding Poverty
 

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