Center for Urban Poverty Solutions
                                    a program of the University Area Enrichment Association


Poverty in America
In 1964, President Lyndon Johnson launched the "War on Poverty" and for almost five decades billions of dollars have been spent in low-income urban communities through the well-intended social service programs of both public and private institutions. Statistically, poverty rates have dropped and some programs have had a positive impact; many however have had a devastating negative impact on an increasing number of low income families, often consigning them to remain mired in the cycle of generational poverty. This has resulted in a consistent rise in poverty rates over the past twenty years , and a significant increase in the costs to addresses the social issues stemming from generational poverty.  

The Problem – The Charity Assumption
Many of the social programs in question are ineffective because they operate from a deficit or “charity" assumption; which effectively treats people as if they cannot do for themselves. In other words, this assumption most often results in programs that provide support and resources without requiring a demonstration of personal commitment or personal responsibility from the recipients to move their own lives forward. While there is a place for charity, particularly when people truly cannot do for themselves, when the charity assumption is the dominant influence on the perception of those who fund, develop, staff and receive social service programs, it has the unintended consequence acting as a disincentive to the development of personal capacity and the sense of personal responsibility required for personal achievement.  When people are not able to or required to achieve in some way, they lose a sense of their inherent dignity and lose faith in their ability to improve their own life circumstances. Additionally the loss of their sense of personal responsibility contributes to the development of the attitude of entitlement that plagues many of the people depending on solely on government support for their basic needs.  

The Solution
On its face, poverty obviously has consequences and impacts that require social service programs. And we have historically categorized any program that addresses poverty as a social service program, influence primarily by the charity assumption. But at its core, poverty is an economic issue and programs to address it, need to be seen as economic development programs not social service programs.  

Economic development programs (e.g. business incubators, macro/micro-lending, vocational training) operate with an "asset” assumption which expects and requires that people are willing and able to do for themselves if given resources and opportunities.  In economic development, the resources given are viewed as investments, which before invested require a demonstration (from those requesting…) of personal investment, commitment and ability to deliver a return on investment (ROI). Often, it is a person’s demonstration of personal investment, commitment and ability that serves as collateral for the investment.  

To change lives and transform blighted low-income urban communities’ both policy and practice have to move towards increased investment in economic development programs based on an assest assumption. Only then can we make accessible to individuals and families’ real opportunities for economic self-sufficiency and the abilty to liberate themselves from the cycle of generational poverty. 

We have to recognize that this type of strategic investment in people is both a solution to the problem of generational poverty in urban communities; and a way to grow a productive local and national economy.


Robert Caldwell
Senior Fellow
Center for Urban Poverty Solutions
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