Cycle of poverty
Encyclopedia
In economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...

, the cycle of poverty is the "set of factors or events by which poverty, once started, is likely to continue unless there is outside intervention."

The cycle of poverty has been defined as a phenomenon where poor families become trapped in poverty for at least three generations. These families have either limited or no resources. There are many disadvantages that collectively work in a circular process making it virtually impossible for individuals to break the cycle. This occurs when poor people
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 do not have the resources necessary to get out of poverty, such as financial capital
Financial capital
Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e. retail, corporate, investment banking, etc....

, education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

, or connections. In other words, poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

-stricken individuals experience disadvantages as a result of their poverty, which in turn increases their poverty. This would mean that the poor remain poor throughout their lives. This cycle has also been referred to as a "pattern" of behaviors and situations which cannot easily be changed.

The poverty cycle is usually called "development trap" when it is applied to countries.

Dr. Ruby K. Payne distinguishes between situational poverty, which can generally be traced to a specific incident within the lifetimes of the person or family members in poverty, and generational poverty, which is a cycle that passes from generation to generation, and goes on to argue that generational poverty has its own distinct culture and belief patterns.

Family background

A 2002 research paper titled "The Changing Effect of Family Background on the Incomes of American Adults" analyzed changes in the determinants of family income
Family income
Family income is generally considered a primary measure of a nation's financial prosperity.In the United States, political parties perennially disagree over which economic policies are more likely to increase family income. The party in power often takes the credit for any significant changes in...

 between 1961 and 1999,
focusing on the effect of parental education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

, occupational rank, income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...

, marital status,
family size, region of residence, race, and ethnicity
Ethnic group
An ethnic group is a group of people whose members identify with each other, through a common heritage, often consisting of a common language, a common culture and/or an ideology that stresses common ancestry or endogamy...

. The paper (1) outlines a simple framework for thinking about how family background affects children’s family and income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...

, (2) summarizes previous research on trends in intergenerational inheritance in the United States, (3) describes the data used as a basis for the research which it describes, (4) discusses trends in inequality
Economic inequality
Economic inequality comprises all disparities in the distribution of economic assets and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among countries. The issue of economic inequality is related to the ideas of...

 among parents, (5) describes how the effects of parental inequality changed between 1961 and 1999, (6) contrasts effects at the top and bottom of the distribution, and (7) discusses whether intergenerational correlations of zero would be desirable. The paper concludes by posing the question of whether reducing the intergenerational correlation is an efficient strategy for reducing poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 or inequality. When improving the skills of disadvantaged children is relatively easy, it is an attractive strategy. However, judging by American experience since the 1960s, improving the skills of disadvantaged children is far from easy. As a result, the paper suggests, there are probably cheaper and easier ways to reduce poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 and inequality, such as supplementing the wages of the poor or changing immigration
Immigration
Immigration is the act of foreigners passing or coming into a country for the purpose of permanent residence...

 policy so that it drives down the relative wages of skilled rather than unskilled workers. These alternative strategies would not reduce intergenerational correlations, but they would reduce the economic gap between children who started life with all the disadvantages instead of all the advantages.

Another paper, titled Do poor children become poor adults?, which was originally presented at a 2004 symposium on the future of children from disadvantaged families in France, and was later included in a 2006 collection of papers related to the theme of the dynamics of inequality
Economic inequality
Economic inequality comprises all disparities in the distribution of economic assets and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among countries. The issue of economic inequality is related to the ideas of...

 and poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

, discusses generational income mobility
Economic mobility
Economic mobility is the ability of an individual or family to improve their economic status, in relation to income and social status, within his or her lifetime or between generations...

 in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...

 and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

. The paper opens by observing that in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 almost one half of children born to low income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...

 parents become low income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...

 adults, four in ten in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, and one-third in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

. The paper goes on to observe that rich children also tend to become rich adults—four in ten in the U.S. and the U.K., and as many as one-third in Canada. The paper argues, however, that money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...

 is not the only or even the most important factor influencing intergenerational income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...

 mobility. The rewards to higher skilled and/or higher educated individuals in the labor market
Labour economics
Labor economics seeks to understand the functioning and dynamics of the market for labor. Labor markets function through the interaction of workers and employers...

 and the opportunities for children to obtain the required skills and credentials are two important factors. Reaching the conclusion that income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...

 transfers to lower income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...

 individuals may be important to children in the here in now, but they should not be counted on to strongly promote generational mobility
Economic mobility
Economic mobility is the ability of an individual or family to improve their economic status, in relation to income and social status, within his or her lifetime or between generations...

. The paper recommends that governments focus on investments in children to ensure that they have both the skills and opportunities to succeed in the labor market, and observes that though this has historically meant promoting access to higher and higher levels of education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

, it is becoming increasingly important that attention be paid to preschool
Preschool education
Preschool education is the provision of learning to children before the commencement of statutory and obligatory education, usually between the ages of zero and three or five, depending on the jurisdiction....

 and early childhood education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

.

Lack of jobs due to deindustrialization

Sociologist William Julius Wilson
William Julius Wilson
William Julius Wilson is an American sociologist. He worked at the University of Chicago 1972-1996 before moving to Harvard....

 has said that the economic restructuring
Economic restructuring
Economic restructuring refers to the phenomenon of Western urban areas shifting from a manufacturing to a service sector economic base. This transformation has affected demographics including income distribution, employment, and social hierarchy; institutional arrangements including the growth of...

 of changes from manufacturing to a service-based economy has led to chronic joblessness in the inner-cities and with it a loss of skills and inability to find jobs. This "mismatch" of skills to jobs available is said to be a huge driver of poverty.

Effects of modern education

Research shows that school
School
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...

s with students that perform lower than the norm are also those hiring least-qualified teachers as a result of new teachers generally working in the area that they grew up in. This leads to certain schools not producing many students that go on to college. Students from these schools that go on to be college graduates are not as skilled as they would be if they had gone to a school with higher-qualified instructors. This leads to education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

 perpetuating a cycle of poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

. The individuals that choose to work in the schools close to them does not adequately supply the school
School
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...

 with enough teachers. The schools must then outsource their teachers from other areas. Susanna Loeb from the School of Education at Stanford did a study and found that teachers who are brought in from the suburbs are 10 times more likely to transfer out of the school
School
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...

 after their initial year. The fact that the teachers from the suburbs leave appears to be an influential factor for schools hiring more teachers from that area. The lack of adequate education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

 for children is part of what allows for the cycle of poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 to continue.

Culture of poverty

Another theory for the perpetual cycle of poverty is that poor people have their own culture with a different set of values and beliefs which keep them trapped within that cycle generation to generation. This theory has been explored by Ruby K. Payne in her book A Framework for Understanding Poverty. In this book she explains how there is a class system in the United States where there is a wealthy upper class, a middle class, and the working poor class. These classes each have their own set of rules and values which differ from each other. In order to understand the culture of poverty and how the poor class’s set of rules tend to keep them trapped in this continual cycle Payne describes these rules and how they affect the poor class. Time is something that is treated differently by the poor; they generally do not plan ahead but simply live in the moment which keeps them from saving money which will help their children escape poverty.

Payne expresses how important it is when working with the poor to understand their unique cultural differences so that one does not get frustrated but instead tries to work with them on their ideologies and help them to understand how they can help themselves and their children escape the cycle. One aspect of generational poverty is a learned helplessness that is passed from parents to children and on down the line. This learned helplessness can be explained as the ideology that there is no way for one to get out of poverty and so in order to make the best of their situation one must live in the moment and experience what they can when they can. This leads to people spending money right as they get it and teaches children to do the same which also creates a trap for children keeping them and their children in poverty. Another important point Payne makes is that leaving poverty is not as simple as acquiring a lot of money and moving up but also includes giving up relationships in exchange for achievement. This helps to explain why the culture of poverty tends to keep families in poverty from generation to generation as this is the culture they know and the relationships they have are all within that class.
The "culture of poverty" theory has been debated and critiqued by many people including Eleanor Burke Leacock (and others) in her book The Culture of Poverty: A Critique. Leacock claims that people who use the term, "culture of poverty" only "contribute to the distorted characterizations of the poor." Aligning with Leacock's beliefs on the subject, Michael Hannan in an essay argues that the "culture of poverty" is "essentially untestable." This is due to many things including the highly subjective nature of poverty and issues concerning the universal act of classifying only some impoverished people as trapped in the culture.

Life shocks

2004 research in New Zealand produced a report that showed that "life shocks" can be endured only to a limited extent, after which people are much more likely to be tipped into hardship. The researchers found very little differences in living standards for people who have endured up to 7 negative events in their lifetime. People who had 8 or more life shocks were dramatically more likely to live in poverty than those who had 0 to 7 life shocks. A few of the life shocks studied were:
  • Marriage (or similar) break-ups (divorce
    Divorce
    Divorce is the final termination of a marital union, canceling the legal duties and responsibilities of marriage and dissolving the bonds of matrimony between the parties...

    )
  • Forced sale of house
  • Unexpected and substantial drop in income
  • Eviction
    Eviction
    How you doing???? Eviction is the removal of a tenant from rental property by the landlord. Depending on the laws of the jurisdiction, eviction may also be known as unlawful detainer, summary possession, summary dispossess, forcible detainer, ejectment, and repossession, among other terms...

  • Bankruptcy
    Bankruptcy
    Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....

  • Substantial financial loss
  • Redundancy (being laid off from a job)
  • Becoming a sole parent
  • 3 months or more unemployed
  • Major damage to home
  • House burgled
  • Victim of violence
  • Incarceration
    Incarceration
    Incarceration is the detention of a person in prison, typically as punishment for a crime .People are most commonly incarcerated upon suspicion or conviction of committing a crime, and different jurisdictions have differing laws governing the function of incarceration within a larger system of...

  • A non-custodial sentence (community service
    Community service
    Community service is donated service or activity that is performed by someone or a group of people for the benefit of the public or its institutions....

    , or fines, but not imprisonment)
  • Illness lasting three weeks or more
  • Major injury or health problem
  • Unplanned pregnancy and birth of a child


The study focused on just a few possible life shocks, but many others are likely as traumatic or more so. Chronic PTSD, complex PTSD
Complex post-traumatic stress disorder
Complex post-traumatic stress disorder is a psychological injury that results from protracted exposure to prolonged social and/or interpersonal trauma with lack or loss of control, disempowerment, and in the context of either captivity or entrapment, i.e. the lack of a viable escape route for the...

, and depression
Depression (mood)
Depression is a state of low mood and aversion to activity that can affect a person's thoughts, behaviour, feelings and physical well-being. Depressed people may feel sad, anxious, empty, hopeless, helpless, worthless, guilty, irritable, or restless...

 sufferers could have innumerable causes for their mental illness, including those studied above. The study is subject to some criticism

Tracking (How it perpetuates the cycle)

History in the United States has shown that Americans saw education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

 as the way to end the perpetual cycle of poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

. In the present, children from low to middle income households are at a disadvantage. They are twice as likely to be held back and more likely not to graduate from high school
School
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...

. Recent studies have shown that the cause for the disparity among academic achievement results from the school’s structure where some students succeed from an added advantage and others fail as a result of lacking that advantage. Educational institutions with a learning disparity are causing education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

 to be a sustaining factor for the cycle of poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

. One prominent example of this type of school
School
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...

 structures is tracking.
Tracking
Tracking (education)
Tracking is separating pupils by academic ability into groups for all subjects or certain classes and curriculum within a school. It may be referred as streaming or phasing in certain schools. In a tracking system, the entire school population is assigned to classes according to whether the...

 is predominantly used to help organize a classroom, so that there the variability
Statistical dispersion
In statistics, statistical dispersion is variability or spread in a variable or a probability distribution...

 of academic ability in classes is decreased. Students are tracked based on their ability level, generally based on a standardized test after which they are given different course requirements. Some people believe that tracking
Tracking (education)
Tracking is separating pupils by academic ability into groups for all subjects or certain classes and curriculum within a school. It may be referred as streaming or phasing in certain schools. In a tracking system, the entire school population is assigned to classes according to whether the...

 "enhances academic achievement and improves the self-concept of students by permitting them to progress at their own pace."

The negative side is that studies have shown that tracking decreases students’ opportunity to learn. Tracking also has a disproportionate number of Latino
Latino
The demonyms Latino and Latina , are defined in English language dictionaries as:* "a person of Latin-American descent."* "A Latin American."* "A person of Hispanic, especially Latin-American, descent, often one living in the United States."...

s and African American
African American
African Americans are citizens or residents of the United States who have at least partial ancestry from any of the native populations of Sub-Saharan Africa and are the direct descendants of enslaved Africans within the boundaries of the present United States...

s that have low socioeconomic status
Socioeconomic status
Socioeconomic status is an economic and sociological combined total measure of a person's work experience and of an individual's or family’s economic and social position in relation to others, based on income, education, and occupation...

 in the lower learning tracks. Tracking separates social class
Social class
Social classes are economic or cultural arrangements of groups in society. Class is an essential object of analysis for sociologists, political scientists, economists, anthropologists and social historians. In the social sciences, social class is often discussed in terms of 'social stratification'...

es putting the poor and minority
Minority group
A minority is a sociological group within a demographic. The demographic could be based on many factors from ethnicity, gender, wealth, power, etc. The term extends to numerous situations, and civilizations within history, despite the misnomer of minorities associated with a numerical statistic...

 children in lower tracks where they receive second-rate education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

, and the students that are better off are placed in upper tracks where they have many opportunities for success
Goal
A goal is an objective, or a projected computation of affairs, that a person or a system plans or intends to achieve.Goal, GOAL or G.O.A.L may also refer to:Sport...

. Studies have found that in addition to the higher tracks having more extensive curriculum, there is also a disparity among the teachers and instructional resources provided. There appears to be a race/class bias which results in intelligent children not receiving the skills or opportunities needed for success or social/economic mobility, thus continuing the cycle of poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

. There is an overall perception that American education is failing and research has done nothing to counter this statement, but instead has revealed the reality and severity of the issue of the existence of tracking and other structures that cause the cycle of poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 to continue.

Theories and strategies for breaking the cycle of poverty

While many governmental officials are still trying to find an answer to poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

, many states and localities are making an effort to break the cycle. Mayor Bloomberg
Michael Bloomberg
Michael Rubens Bloomberg is the current Mayor of New York City. With a net worth of $19.5 billion in 2011, he is also the 12th-richest person in the United States...

 of New York City has been advocating a plan where parents are paid up to $5000 a year for meeting certain goals that will better their lives. This policy was modeled after a Mexican
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...

 initiative that aims to help poor families make better decisions that will help them in the long-term and break cycle of poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 and dependence that have been known to last for generations. In addition, many states also have been making an attempt to help break the cycle. For example, a bill has been proposed in the California Assembly that “would establish an advisory Childhood Poverty Council to develop a plan to reduce child poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 in the state by half by 2017 and eliminate it by 2027”. Even when the plan has poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 reduction as the goal, a rise in child poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 might be the reality for many states as it was in Connecticut. States are attempting to not only decrease the number of people in the cycle of poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

, but to also adjust the stringent work requirements that resulted from Congress’s welfare reform. The tougher work restrictions have upset many poverty advocates that believe the new regulations prevent individuals that are vulnerable or that lack skills from preparing for work. California Democrat Representative McDermott believes as a result of this and other effects of the new limitations, it has been harder for individuals to escape a life of poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

.
In his book Children in Jeopardy: Can We Break the Cycle, Irving B. Harris discusses ways in which children can be helped to begin breaking the cycle of poverty. He stresses the importance of starting early and teaching children the importance of education from a very young age as well as making sure these children get the same educational opportunities as students who are richer. Family values such as nurturing children and encouraging them to do well in school need to be promoted as well as a non-authoritarian approach to parenting. Harris also discusses the importance of discouraging teenage pregnancy and finding ways in which to decrease this phenomenon so that when children are born they are planned and wanted and thus have a better chance at breaking the cycle of poverty.

It has been suggested by researchers like Lane Kenworthy that increasing welfare benefits and extending them to non-working families can help reduce poverty as other nations that have done so have had better results.

The Harlem Children's Zone
Harlem Children's Zone
The Harlem Children's Zone is a non-profit organization for poverty-stricken children and families living in Harlem, providing free support for the children and families in the form of parenting workshops, a pre-school program, three public charter schools, and child-oriented health programs for...

 is working to end generational poverty within a 100-block section of Harlem
Harlem
Harlem is a neighborhood in the New York City borough of Manhattan, which since the 1920s has been a major African-American residential, cultural and business center. Originally a Dutch village, formally organized in 1658, it is named after the city of Haarlem in the Netherlands...

 using an approach that provides educational support and services for children and their families from birth through college.
This approach has been recognized as a model by the Obama administration
Presidency of Barack Obama
The Presidency of Barack Obama began at noon EST on January 20, 2009 when he became the 44th President of the United States. Obama was a United States Senator from Illinois at the time of his victory over Arizona Senator John McCain in the 2008 presidential election...

's anti-poverty program.

Effects on children

Children are most at the mercy of the cycle of poverty. Because a child is dependent on his or her guardian(s), if a child's guardian is in poverty, then they will be also. It is almost impossible for a child to pull him or herself out of the cycle due to age, lack of experience, lack of a job, etc. Because children are at such a young and impressionable age, the scars they gain from experiencing poverty early in life inevitably carry on into their adult life. "Childhood lays the foundations for adult abilities, interests, and motivation." Therefore, if they learn certain poverty-related behaviors in childhood, the behaviors are more likely to perpetuate.

Studies have shown that household structure sometimes has a connection to childhood poverty. Most studies on the subject also show that the children that are in poverty tend to come from single-parent households (most often matriarchal). In 1997, nearly 8.5 million (57%) poor children in the US came from single-parent households. With the rate of divorce increasing and the number of children born out of wedlock increasing, the number of children that are born into or fall into single-parent households is also increasing. Even though this does not mean that the child/children will be impoverished because of it.

According to Ashworth, Hill, & Walker (2004), both urban and rural poor children are more likely to be isolated from the nonpoor in schools, neighborhoods, and their communities. Human nature is to have relationships with others but when a child is isolated due to their socioeconomic status, it's hard to overcome that when the status doesn't improve. Therefore, poor children also have more tense relationships which sometimes results in abnormal behavior, acting out, or other unexplained behaviors.

There have been programs developed to specifically address the needs of poor children. Francis Marion University
Francis Marion University
Francis Marion University is a state-supported liberal arts university located six miles east of Florence, South Carolina, USA...

’s Center of Excellence to Prepare Teachers of Children of Poverty has a number of initiatives devoted to equipping teachers to be more effective in raising the achievement of children of poverty. Located in South Carolina, the Center provides direct teacher training as well as facilitates research in the area of poverty and scholastic achievement.

See also

  • Culture of poverty
    Culture of poverty
    The culture of poverty is a social theory that expands on the cycle of poverty. Proponents of this theory argue that the poor are not simply lacking resources, but also have a unique value system...

  • Welfare trap
    Welfare trap
    The welfare trap theory asserts that taxation and welfare systems can jointly contribute to keep people on social insurance because the withdrawal of means tested benefits that comes with entering low-paid work causes there to be no significant increase in total income...

  • Welfare's effect on poverty
    Welfare's effect on poverty
    The effect of social welfare on poverty is controversial. Since the goal of welfare programs is to reduce poverty, it has been debated, primarily in the United States, whether or not welfare programs achieve this goal....

  • Poverty
    Poverty
    Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

  • Economic inequality
    Economic inequality
    Economic inequality comprises all disparities in the distribution of economic assets and income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among countries. The issue of economic inequality is related to the ideas of...

  • Feminization of poverty
    Feminization of poverty
    Feminization of poverty describes a phenomenon in which women represent disproportionate percentages of world’s poor. UNIFEM describes it as "the burden of poverty borne by women, especially in developing countries"...

  • Income disparity
    Income disparity
    The gender pay gap is the difference between male and female earnings expressed as a percentage of male earnings, according to the OECD. The European Commission defines it as the average difference between men’s and women’s hourly earnings...

  • Social mobility
    Social mobility
    Social mobility refers to the movement of people in a population from one social class or economic level to another. It typically refers to vertical mobility -- movement of individuals or groups up from one socio-economic level to another, often by changing jobs or marrying; but can also refer to...

  • Minimum wage
    Minimum wage
    A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...

  • Poverty threshold
    Poverty threshold
    The poverty threshold, or poverty line, is the minimum level of income deemed necessary to achieve an adequate standard of living in a given country...

  • List of countries by percentage of population living in poverty
  • Diseases of poverty
    Diseases of poverty
    Diseases of poverty is a term sometimes used to collectively describe diseases and health conditions that are more prevalent among the poor than among wealthier people. In many cases poverty is considered the leading risk factor or determinant for such diseases, and in some cases the diseases...

  • Deprivation index
  • Rural ghetto
    Rural ghetto
    The term rural ghetto was coined by Osha Gray Davidson in the book Broken Heartland: The Rise of America's Rural Ghetto and is used to describe the influx of poverty and neglect in the small towns of Midwestern and Southeastern United States that occurs....

  • Social welfare provision
  • Working poor
    Working poor
    - Definition in the United States :There are several popular definitions of "working poor" in the United States. According to the US Department of Labor, the working poor "are persons who spent at least 27 weeks [in the past year] in the labor force , but whose incomes fell below the official...

  • Make Poverty History
    Make Poverty History
    Make Poverty History is the name of a campaign that exists in a number of countries, including Australia, Canada, Denmark , Finland, New Zealand, Nigeria, Norway, Romania, the United Arab Emirates, Great Britain and Ireland...

  • Welfare State
    Welfare State
    The Welfare State is a commitment to health, education, employment and social security in the United Kingdom.-Background:The United Kingdom, as a welfare state, was prefigured in the William Beveridge Report in 1942, which identified five "Giant Evils" in society: squalor, ignorance, want, idleness...

  • Elite theory
    Elite theory
    In political science and sociology, elite theory is a theory of the state which seeks to describe and explain the power relationships in contemporary society. The theory posits that a small minority, consisting of members of the economic elite and policy-planning networks, holds the most power and...

  • Glass ceiling
    Glass ceiling
    In economics, the term glass ceiling refers to "the unseen, yet unbreachable barrier that keeps minorities and women from rising to the upper rungs of the corporate ladder, regardless of their qualifications or achievements." Initially, the metaphor applied to barriers in the careers of women but...

  • Horatio Alger myth
    Horatio Alger myth
    The "Horatio Alger myth" is a criticism of the rags to riches message in books by Horatio Alger, Jr. . Alger wrote over 100 books for young working class males, beginning with Ragged Dick, which was published in 1867. His books have been described as rags to riches stories...

  • Tracking (education)
    Tracking (education)
    Tracking is separating pupils by academic ability into groups for all subjects or certain classes and curriculum within a school. It may be referred as streaming or phasing in certain schools. In a tracking system, the entire school population is assigned to classes according to whether the...

  • Welfare culture
    Welfare culture
    Welfare culture refers to the behavioral consequences of providing poverty relief to low-income individuals. Welfare is considered a type of social protection, which may come in the form of remittances, such as ‘welfare checks’, or subsidized services, such as free/reduced healthcare, affordable...

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