Economist and blogger Sanne Blauw regularly writes about microeconomics, development economics and psychology. On her own blog, 'Out of the Blauw' ('Blauw means 'blue' in Dutch), she has written about a lesser-known impact of poverty: on psychology.
While it won't be news for anyone that poverty affects your state of mind in a negative way, it is perhaps surprising that it also affects cognitive abilities.
"A study among farmers in India shows that their IQ score is ten points higher after harvest – when there is plenty of money – than before harvest – when they are penniless."
That means that poverty not only saps people's initiative and willpower - it actually makes it harder for them to perform well in their tasks. People are not just born into poverty, coming into the world to parents who cannot afford to send their children to shool, or in a location where conditions are harsh. The lack of resources and the pressure this puts on them makes it even harder for them to escape their circumstances.
Read Sanne's blog post on Out of the Blauw