Intheirarticleonthepsychologyofpoverty, JohannesHaushoferandErnstFerrcitethishopelessnessandnegativeoutlookas a causeforpeopleinpovertytomakemorerisky, short-sightedfinancialdecisions.
Whilerichpeoplecandoitfor a quickthrill, poorerpeoplehavetoprioritizetheseactivitiesoverotherthings, oftenleadingtoanxietyandhopelessnessgrowingworse. Thestudysuggeststhattheseshort-sightedfinancialdecisionsaren't usuallydonewiththehopesofimprovingtheirfinancialsituationorworkingtowards a specificgoal.