The primary source of the characters' suffering in the novel is the severe poverty in which they live. Their tenement is inhabited by "true assassins" who harm anyone in their path. Nearby, "a worm of yellow convicts... [crawls] slowly along the river's bank." The Johnsons' building "quivered and creaked from the weight of humanity stamping about in its bowels." In this unforgiving environment, children like Maggie's younger brother Tommie succumb to the conditions. Family life disintegrates as Mr. and Mrs. Johnson drown their sorrows in alcohol to escape their harsh reality, subsequently unleashing their drunken anger on their children. The streets become places of learning where Jimmie and his friends absorb the cruelty they must withstand. Maggie's aspirations to escape her destitute life lead her to the monotonous job at the collar and cuff factory and eventually to Pete. After being rejected by Pete and her family, she is compelled to turn to prostitution for survival.

The novel's setting cultivates an environment of moral hypocrisy as characters try to justify their own unethical actions. Mr. Johnson yells at his wife to stop "poundin’ a kid" immediately after he has violently kicked Jimmie while attempting to break up a street brawl. Mrs. Johnson, who is even harsher with their children than her husband, calls Maggie a disgrace to the family, questioning, "who would t’ink such a bad girl could grow up in our fambly." Jimmie, who has abandoned many young women just as Pete has done with Maggie, vows to kill Pete for his treatment of her. Yet, he only "vaguely" considers whether "some of the women of his acquaintance had brothers." However, he never for a moment confuses himself with these brothers or his sister with theirs.

A subtle social hypocrisy is revealed in Maggie's relationship with Pete. For men, surviving in this environment requires developing an inflated sense of self-importance and a feeling of complete independence. This path is not available to women like Maggie, whose only escape is through total dependence on a man. Ironically, when she embraces the false promises Pete offers, she loses her self-identity, thereby diminishing her value in Pete’s eyes. When her family disowns her due to the neighborhood's disapproval of her relationship with Pete, she is compelled to become what they have accused her of being. Unable to endure this life, she ultimately takes her own life.

By placing the entire story in the Bowery, illustrating how Jimmie mirrors his parents' actions, letting Pete brag about his adventures, and offering multiple instances of repetitive or forced behaviors, Crane implies that everyone in the slums is a victim, ensnared by their environment and powerless to alter their fate. Their behaviors are depicted as manifestations of slum existence. This notion of environmental determinism was widely accepted among ministers and social reformers during Crane's time.

Crane employs almost all his characters to challenge this concept. He portrays them as driven by self-centered desires, consistently expecting others to meet their demands. Mary Johnson chooses to drink excessively, be physically and verbally aggressive, and hinder the efforts of those around her. Her anger impacts everyone in her vicinity. Jimmie inherits his parents' negative traits, using them to manipulate situations for his own benefit. He seduces at least one woman, coerces Maggie into working in a sweatshop, and expects others to accommodate his whims. Pete dates Maggie and becomes irritated when she refuses to kiss him after he spends money on her. He decides to have sex with Maggie as a form of punishment for her resistance and meticulously plans to seduce her. Pete identifies what Maggie...

Conversely, Maggie is depicted as caring deeply for her younger brothers, trying to support them when they are beaten by Mary. She also makes efforts to decorate their apartment to improve its appearance beyond that of a typical slum dwelling. Crane repeatedly illustrates how Maggie's attempts are hindered by her family, making her choice to live with Pete more understandable. Her family victimizes her by offering no hope and obstructing even the smallest improvements. Maggie is portrayed as naive, perhaps unrealistically so, to emphasize both her generous nature and her genuine victimization. She longs to improve her life and seeks love and acceptance. These desires are not exclusive to those living in the slums, yet Crane crafts a narrative showing how she is rejected by all social levels and ultimately driven into prostitution.