Author Matthew Desmond begins Poverty, by America by defining poverty. However, Desmond's definition of poverty is different from what people usually define it as. Desmond challenges the notion that poverty is equivalent to not having enough money. Instead, Desmond defines poverty as a state of mind. People experiencing poverty are often in pain and are experiencing fear, shame, illness, and, oftentimes, enforced limitations. All of these factors significantly diminish their life far beyond just finances.
Desmond's thesis is that people experiencing poverty are entangled in a complex web of institutions that hinder their progress and constantly worsen (as some claim) rather than help their conditions. People are in poverty because society's social structure either exploits or outright neglects them. Because of this, efforts to curb poverty have stagnated over the past fifty years.
Desmond also says that poverty is being exacerbated by the diminishing power of workers as compared to their managers. As people earn less, their power decreases. Desmond alleges that producers and consumers have conspired to choose low labor costs over fair wages. Not only that, Desmond argues that technological advancement has favored certain special interest groups and the wealthy—not poor people. If workers were given more rights and power, poverty would quickly become less of an issue.
Desmond also points out how middle and upper-class individuals maintain their privilege. To that end, they misconstrue "welfare" as free handouts for the poor, whom they consider to be lazy or less than. But Desmond says that the wealthy benefit more from government handouts than the poor, due in part to programs surrounding home down payments and health insurance. He says that these policies should also change.
To help solve poverty, Desmond argues that the government should increase the minimum wage, invest in affordable housing, and close tax loopholes. In other words, he says that the wealthy and poor should be treated the same. He also says that efforts should be made to integrate the poor into communities with more social capital, helping their mindset.
