Discrimination against the poor

Active prejudice towards people in poverty

Nature

Discrimination against the poor, also known as classism or economic discrimination, refers to the unfair treatment, prejudice, or social exclusion of individuals based on their low socioeconomic status. This problem manifests in limited access to education, healthcare, employment, and housing, perpetuating cycles of poverty. Discrimination against the poor can be institutional, structural, or interpersonal, reinforcing negative stereotypes and social stigma. It undermines social cohesion, equality, and human rights, contributing to broader issues of social injustice and inequality. Addressing this form of discrimination is essential for promoting inclusive societies and ensuring equal opportunities for all individuals, regardless of economic background.

Background

Discrimination against the poor emerged as a recognized global issue in the 19th century, highlighted by social reformers documenting systemic barriers faced by impoverished populations. International attention intensified in the 20th century, as studies revealed persistent exclusion in education, employment, and justice systems. Landmark reports by organizations such as the United Nations and World Bank in the late 20th and early 21st centuries further underscored the widespread and enduring nature of this form of discrimination.

Incidence

Low-income households have practical difficulties in gaining access to credit because their economic characteristics differ from the usual requirements of financial institutions. For example, commercial lending institutions required that borrowers have a stable source of income out of which the principal and interest on loans can be paid according to the agreed terms. However, the income of may self-employed households is not stable, regardless of its size. Also a large number of small loans are needed to serve the poor, but lenders prefer dealing with large loans in small numbers to minimize administration costs. They also look for collateral with a clear title -- which many low-income urban households do not have. In additions, bankers, who are inherently conservative, tend to view low-income households as a bad risk, although many studies prove that they have a better repayment record than other income groups.

Claim

Discrimination against the poor is a grave injustice that undermines the very foundation of a fair society. It perpetuates cycles of poverty, denies equal opportunities, and strips individuals of dignity and hope. Ignoring this issue allows inequality to fester, fueling resentment and social unrest. Addressing discrimination against the poor is not just a moral obligation—it is essential for building a just, compassionate, and truly prosperous community for everyone.

Counter-claim

Discrimination against the poor is vastly overstated and hardly a pressing issue in today’s society. Opportunities exist for anyone willing to work hard, and social programs already provide ample support. Focusing on so-called “poverty discrimination” distracts from more significant problems. Personal responsibility, not systemic bias, determines success. Elevating this issue only encourages a victim mentality rather than empowering individuals to improve their circumstances through effort and determination.