That passage argues that poverty and indebtedness can function as mechanisms of social control.
In simpler terms, it claims that:
- Keeping a group economically insecure leaves people with few alternatives.
- Financial desperation makes people more willing to accept poorly paid or undesirable work.
- The same desperation can make recruitment into organizations or causes easier.
- Therefore, the persistence of an economically disadvantaged “underclass” is presented not merely as an accidental outcome, but as something that can be useful to those with power.
The key phrase is “the purpose of keeping people…”. That is a strong claim about intent: it goes beyond saying that poverty has these effects and asserts that maintaining poverty is deliberately done for those reasons.
If you're assessing the argument, that distinction matters: “poverty can make people more vulnerable to exploitation” is an empirical claim; “poverty is deliberately maintained in order to exploit people” requires evidence about the intentions and actions of particular actors.
Yes—but the evidence is stronger for the narrower claim that poverty/debt can be deliberately exploited to control labour than for the much broader claim that “the purpose of keeping an underclass poor is to control them.”
There are several well-documented examples:
- Debt bondage: The ILO documents cases where employers or recruiters deliberately create or exploit debts—through recruitment fees, advances, inflated charges, or wage deductions—to make workers unable to leave. The ILO explicitly identifies poverty as increasing vulnerability to these practices.
- Brazilian agricultural labour: An ILO investigation documented employers/recruiters using advances, inflated charges for food and accommodation, and employer-controlled stores to accumulate debts that workers could not realistically repay. The workers were predominantly poor people seeking employment.
- South Asian bonded labour: Research compiled by the ILO describes workers being recruited with advances and false promises, subsequently becoming trapped in debt-based labour relationships.
- Modern forced labour: The ILO's current estimates put forced labour at about 27.6 million people, with private actors responsible for the majority. Its research identifies illegal profits as a major driver and debt bondage as an important mechanism.
There is also historical evidence that goes beyond merely taking advantage of existing poverty. In some systems, employers had incentives and mechanisms that actively created dependency—for example, advances that became debts, employer-controlled stores, wage withholding, and restrictions on leaving. Those are concrete examples of people with power maintaining conditions that made workers dependent.
But there's an important evidentiary gap in the quotation you gave.
What the evidence does—and doesn't—show
| Claim | Evidence |
|---|---|
| Poverty makes people more vulnerable to exploitation | Very strong |
| Debt can be deliberately used to bind workers to employers | Very strong |
| Employers/recruiters sometimes deliberately create or perpetuate worker dependency | Strong, documented cases |
| Exploitative labour can itself perpetuate poverty | Strong |
| Powerful groups have historically benefited from keeping particular populations economically dependent | Strong in particular historical cases |
| “The purpose of keeping people poor is to control them” as a general explanation of poverty | Not established by this evidence |
The last distinction is important. The evidence establishes mechanisms of exploitation and deliberate dependency, but it doesn't establish that poverty in general is maintained because that is its intended purpose.
In fact, the ILO explicitly describes a two-way relationship: poverty can make people susceptible to forced labour, while forced labour can then cause or perpetuate poverty.
So if the quotation is intended as a historical/general thesis, I'd characterize it as partly grounded in documented history but considerably stronger than what the evidence by itself establishes.
If you want, I can also look specifically for historical examples where there is documentary evidence that elites/governments explicitly intended to keep a population poor or indebted in order to obtain cheap labour. That would test the strongest version of the claim.
Yes. Looking specifically for documentary evidence of deliberate policy, rather than merely evidence that poor people were exploited, turns up some quite strong historical cases.
The clearest example I found is South Africa's segregationist labour system, particularly from the late 19th century through apartheid.
1. South Africa: land dispossession explicitly linked to labour supply
The 1913 Natives Land Act restricted Black South Africans' ability to acquire land outside designated reserves. The reserves constituted only a small fraction of the country. The effect was to undermine independent African farming and push people toward wage labour.
This isn't just a later interpretation. Historical documentation describes the policy in terms of its labour consequences. South African History Online records that the reserves were intended to function as pools of migrant labour for white farms and urban industry, while independent tenancy outside the reserves was restricted.
A recent academic treatment in the Industrial Law Journal is even more explicit: it describes the 1913 Act as a response to demands from the white farming and mining sectors for cheap labour and says that dispossession ensured a supply of cheap labour.
And there is unusually direct contemporary evidence. In a 1912 political address discussing proposed legislation, the speaker described the policy's “sole object” as providing cheap labour for farmers, explaining that it would drive thousands of Africans off the land.
That's quite close to the proposition you're investigating:
restrict people's independent means of subsistence → make them dependent on wage employment → obtain a large supply of cheap labour.
2. South Africa: the government explicitly envisioned a cheap migrant-labour reservoir
The evidence becomes even stronger in the late 1940s.
The National Party's apartheid programme advocated maintaining Black people primarily in rural reserves while permitting temporary migration to cities for employment. Contemporary historical accounts describe this explicitly as creating a cheap labour reservoir for industry without allowing Black families to settle permanently in towns.
This is important because it demonstrates something more specific than ordinary economic exploitation. The objective wasn't simply:
“We want cheap workers.”
It involved constructing a social system in which workers couldn't readily establish an independent economic existence outside the system, while simultaneously ensuring that industry could obtain their labour.
South African History Online summarizes the consequences of the 1913 Act particularly starkly: it restricted most Black South Africans to a small portion of the land, abolished sharecropping, and forced many previously independent families either into farm labour or increasingly overcrowded reserves.
3. The mining industry provides an unusually clear paper trail
The South African gold-mining industry developed the migrant-labour system partly because mines wanted workers who could be paid relatively low wages.
By 1946, when roughly 76,000 Black miners went on strike, the Chamber of Mines explicitly defended the cheap-labour system. The subsequent Lansdowne Commission accepted the premise that a constant supply of cheap labour was necessary and that the migrant system was the mechanism for providing it.
The crucial mechanism was that miners' wages could be treated as merely a “supplementary income”, on the assumption that their families would maintain themselves through subsistence agriculture in the reserves.
But the reserves were themselves increasingly impoverished and overcrowded. The result was a circular system:
land restriction → inadequate rural livelihood → need for migrant wages → controlled migration → low wages → continued rural poverty → continued dependence on migrant labour.
That is remarkably close to the mechanism described in the quotation you originally gave.