Why Mental Bandwidth Could Explain the Psychology Behind Poverty

Poverty may reduce the available cognitive bandwidth to the point where one’s ability to make better choices could be severely reduced.

Think about the last time you were really busy — maybe work was more stressful than usual, you had a sick kid or the car was in the shop. Did things in your life start to slip through the cracks? A bill or two didn’t get paid on time, or you opened the fridge and were surprised to find it bare?

According to University of Pennsylvania economist Heather Schofield, that experience is a perfect example of what she and fellow researchers call "bandwidth," or the capacity of the brain’s ability to perform basic functions that underlie both higher-order behavior and decision-making. When bandwidth is taxed, there’s less of it available for use in other judgements or decisions, leading to some potentially undesirable choices (a late fee on your Visa, for example, or a trip through a drive-thru instead of heading to the grocery store).

Full Story: http://knowledge.wharton.upenn.edu/article/bandwidth-explain-psychology-behind-poverty/