Secondary poverty is a description of poverty referring to those living below the poverty line whose income was sufficient for them to live above the line, but was spent on things other than the necessities of life.
Factors contributing to secondary poverty
The Bureau of Labor Statistics found that "the average American consumer dedicates 1 percent of all their spending to alcohol".
In Scotland, households spent an average of £8.90 a week on alcohol.
In the United States, the average individual loses $400.00 USD to gambling each year.
The National Anti-Gambling League, which was founded in 1890, condemned the lottery as a cause of secondary poverty. More recently, sociologist Gerda Reith stated that the lottery exploited working classes who see it as one of the sole avenues for liberation from oppression. Reith has stated that governments use the lottery as a means to increase their revenue, calling it an "extra form of taxation".
Indeed, people in the low-income brackets (2.8%) spend a higher percentage of their household income on games of chance than people in higher income brackets (0.5%). This is important given that the risk of gambling related harm increases significantly when more than 1% of gross family income is spent on gambling activities. The additional risk of gambling for those in a lower income bracket warrants further attention with the expansion of government-operated gambling throughout Canada, especially since increased rates of problem gambling prevalence are linked to enhanced accessibility and availability. Problem gambling can be defined as difficulties in limiting money and/or time spent on the activity, which leads to problems for the gambler and others. According to Hahmann and Matheson (n.d.), there are two life events that can lead to homelessness; significant job loss and problem gambling.
In India, smokers spend ₹36,000 annually on smoking cigarettes.
"Data from 2003 estimates 26% of the homeless population were drug abusers."
- Freeman, Mark (2011). "Seebohm Rowntree and secondary poverty, 1899-19541". The Economic History Review. 64 (4): 1175–1194. doi:10.1111/j.1468-0289.2010.00570.x.
- Swatos, William H. (1998). Encyclopedia of Religion and Society. Rowman Altamira. p. 385. ISBN 9780761989561.
- Muniz, Katherine (24 March 2014). "20 ways Americans are blowing their money". USA Today. Retrieved 16 October 2018.
- Milligan, Brian (16 February 2017). "ONS figures show UK spending less on alcohol and tobacco". BBC. Retrieved 16 October 2018.
- Casey, Emma (2016). Women, Pleasure and the Gambling Experience. Routledge. p. 28. ISBN 9781134779680.
- Hahmann, T. E., & Matheson, F. L. (n.d.). Problem Gambling and Poverty. Retrieved March 26, 2019, from https://www.greo.ca/Modules/EvidenceCentre/files/Hahmann_and_Matheson_(2017)_Problem_gambling_and_poverty.pdf
- Saravanan, P (21 June 2016). "Cigarettes & smoking: Here's how to save Rs 36,000". The Financial Express. Retrieved 16 October 2018.
- "Economic Status and Abuse". Dual Diagnosis. Retrieved 2019-03-28.
- Briggs, Asa: "A Study of the Work of Seebohm Rowntree: 1871-1954", Longmans, 1961
- Rowntree, B S: "Poverty: A Study in Town Life", page 298. Macmillan and Co., 1901
- University of Glasgow, Extracts from B. Seebohm Rowntree, Poverty: A Study of Town Life