10: Poverty
- Page ID
- 248161
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)Why Care?
Why should we care about poverty in the first place? As this chapter discusses, many politicians and much of the public blame the poor for being poor, and they oppose increasing federal spending to help the poor and even want to reduce such spending. As poverty expert Mark R. Rank (Rank, 2011) summarizes this way of thinking, “All too often we view poverty as someone else’s problem.” Rank says this unsympathetic view is shortsighted because, as he puts it, “poverty affects us all” (Rank, 2011). This is true, he explains, for at least two reasons.
First, the United States spends much more money than it needs to because of the consequences of poverty. Poor people experience worse health, family problems, higher crime rates, and many other problems, all of which our nation spends billions of dollars annually to address. In fact, childhood poverty has been estimated to cost the US economy an estimated $500 billion annually because of the problems it leads to, including unemployment, low-paid employment, higher crime rates, and physical and mental health problems (Eckholm, 2007). If the US poverty rate were no higher than that of other democracies, billions of tax dollars and other resources would be saved.
Second, the majority of Americans can actually expect to be poor or near poor at some point in their lives, with about 75 percent of Americans in the 20–75 age range living in poverty or near poverty for at least one year in their lives. As Rank (Rank, 2011) observes, most Americans “will find ourselves below the poverty line and using a social safety net program at some point.” Because poverty costs the United States so much money and because so many people experience poverty, says Rank, everyone should want the United States to do everything possible to reduce poverty.
Sociologist John Iceland (Iceland, 2006) adds two additional reasons for why everyone should care about poverty and want it reduced. First, a high rate of poverty impairs our nation’s economic progress: When a large number of people cannot afford to purchase goods and services, economic growth is more difficult to achieve. Second, poverty produces crime and other social problems that affect people across the socioeconomic ladder. Reductions in poverty would help not only the poor but also people who are not poor.
Measuring Poverty
In the United States, poverty is most often referred to as a relative rather than an absolute measurement. Absolute poverty is an economic condition in which a family or individual cannot afford basic necessities, such as food and shelter, so day-to-day survival is in jeopardy. Relative poverty is an economic condition in which the income of a family or individual is less than 50 percent of the average median income. This is sometimes called the poverty level or the poverty line.
Persons in family/household |
Poverty line |
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1 |
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2 |
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3 |
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4 |
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5 |
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6 |
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7 |
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8 |
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For families/households with more than 8 persons, add $5,380 for each additional person |
The Social Security Administration established the official poverty line in the 1960s as a way to measure the number of people living in poverty and to assess how much it changed. In the United States, the government uses the poverty line to indicate the total annual income below which a family would be impoverished. It is based on a minimum family food budget and assumes the average low-income family spends a third of their income on food. The official U.S. poverty rate in 2020 was 11.4 percent, which equates to about 37.2 million people (Shrider et al. 2021)

There has been a continuing debate about the poverty line. Conservatives argue that if benefits provided to poor people, such as Medicaid, subsidized housing, and reduced-price school lunches, are included in the measure, then the extent of poverty is much less than reported. Liberals argue the federal poverty line underestimates poverty and that the thresholds are too low. They point to costs other than food, such as childcare, heating, and housing, that should be incorporated into the measure. There are also regional differences in the cost of living, and therefore the poverty line neglects poor people in expensive cities.
Demographically, some groups are more likely to experience poverty than others. These include (Shrider et al. 2021):
- Single-parent families: For female-headed single-parent households, the poverty rate was 23.4 percent in 2020. For male-headed single-parent households, the poverty rate was 11.5 percent. For married couples, the poverty rate was 4.7 percent. With a couple, there is the potential for dual incomes and more childcare options.
- Children: In 2020, 16.1 percent of children under the age of 18 were living in poverty. The United States generally has lower-quality childcare services than other developed countries. Without high-quality, affordable childcare, it can become difficult for a parent to work steadily.
- Minority groups: While White people make up the largest group of people living in poverty (15.9 million people), minority groups disproportionately experience poverty. In 2020, 19.5 percent of Black people experienced poverty, and 17 percent of Hispanics experienced poverty. This can be traced to numerous factors, such as low wages, discrimination (in housing, education, health care), and differences in education level.
- People with disabilities: In 2020, 25 percent of adults (18 to 64) with a disability lived in poverty. Significant numbers of those who are poor have struggled with disabilities since childhood. A serious disability can make it hard to get a job and can hamper other aspects of life. It is important to note that poverty can lead to and worsen disabilities, but disabilities are not unique to poor families.
- Women: Women in the US and globally are more likely to live in poverty than men in a trend known as the feminization of poverty. This is related to the gender wage gap, the gnder wealth gap, their segregation into low-paying jobs, greater family responsibilities, domestic violence, and other factors. See https://www.americanprogress.org/article/basic-facts-women-poverty/ (Start with the section headed “Why More Women Live in Poverty.”
- LGBTQ people are more likely to be living in poverty than straight and cisgender people. Low wage jobs, discrimination, and lack of coverage by policies that cover traditional families play a role in this.
In addition, we should take into account the intersectionality of these groups, for example a black woman, or Hispanic LGBTQ person, as facing additional obstacles.
Explanations of Poverty
One of the basic debates about poverty turns on whether poverty arises from problems within the poor themselves or in the society in which they live (Rank, 2011). The first type of explanation may be considered an individualistic explanation (i.e., the poor themselves are to blame for their poverty). The second type of explanation is a structural explanation (i.e., problems in American society produce poverty. As the chart below shows, the individualistic explanation assumes that poverty results from the fact that poor people lack the motivation to work and have certain belief and values that contribute to their poverty. The structural explanation assumes that poverty results from problems in society that lead to a lack of opportunity and a lack of jobs.
Explanation |
Major assumptions |
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Individualistic |
Poverty results from the fact that poor people lack the motivation to work and have certain beliefs and values that contribute to their poverty. |
Structural |
Poverty results from problems in society that lead to a lack of opportunity and a lack of jobs. |
It is critical to determine which explanation makes more sense because, as sociologist Theresa C. Davidson observes, “beliefs about the causes of poverty shape attitudes toward the poor.” (Davidson, 2009) In other words, the particular explanation of poverty that people favor affects their view of government efforts to help the poor. Those who attribute poverty to problems in the larger society are much more likely to believe that the government should do more to help the poor than those who attribute poverty to deficiencies among the poor (Bradley & Cole, 2002). The explanation for poverty we favor presumably affects the amount of sympathy we have for the poor, and our sympathy, or lack of sympathy, in turn affects our views about the government’s role in helping the poor. With this backdrop in mind, what do the individualistic and structural explanations of poverty say?
Individualistic Explanation
According to the individualistic explanation, the poor have personal problems and deficiencies that are responsible for their poverty. In the past, the poor were thought to be biologically inferior, a view that has not entirely faded. Today however the much more common belief is that they lack the ambition and motivation to work hard and to achieve success. According to survey evidence, the majority of Americans share this belief (Davidson, 2009). A more sophisticated version of this type of explanation is called the culture of poverty theory (Banfield, 1974; Lewis, 1966; Murray, 2012). According to this theory, the poor generally have beliefs and values that differ from those of the nonpoor and that doom them to continued poverty. For example, they are said to be impulsive and to live for the present rather than the future.
Individualistic explanation is a blaming-the-victim approach. Critics say this explanation ignores discrimination and other problems in American society and exaggerates the degree to which the poor and nonpoor do in fact hold different values (Ehrenreich, 2012; Holland, 2011; Schmidt, 2012). They note that poor employed adults work more hours per week than wealthier adults and that poor parents interviewed in surveys value education for their children at least as much as wealthier parents. These and other similarities in values and beliefs lead critics of the individualistic explanation to conclude that poor people’s poverty cannot reasonably be said to result from a culture of poverty.
Structural Explanation
According to the structural explanation, US poverty stems from problems in American society that lead to a lack of equal opportunity and a lack of jobs. These problems include (a) racial, ethnic, gender, and age discrimination; (b) lack of good schooling and adequate health care; and (c) structural changes in the American economic system, such as the departure of manufacturing companies from American cities in the 1980s and 1990s that led to the loss of thousands of jobs. These problems help create a vicious cycle of poverty in which children of the poor are often fated to end up in poverty or near poverty themselves as adults. This is a which is a blaming-the-system approach rather than a blaming-the-individual approach.
As Rank (Rank, 2011) summarizes this view, “American poverty is largely the result of failings at the economic and political levels, rather than at the individual level…In contrast to [the individualistic] perspective, the basic problem lies in a shortage of viable opportunities for all Americans.” Rank points out that the US economy during the past few decades has created more low-paying and part-time jobs and jobs without benefits, meaning that Americans increasingly find themselves in jobs that barely lift them out of poverty, if at all.
Sociologist Fred Block and colleagues share this critique of the individualistic perspective: “Most of our policies incorrectly assume that people can avoid or overcome poverty through hard work alone. Yet this assumption ignores the realities of our failing urban schools, increasing employment insecurities, and the lack of affordable housing, health care, and child care. It ignores the fact that the American Dream is rapidly becoming unattainable for an increasing number of Americans, whether employed or not.” (Block, et. al., 2006). Most sociologists favor the structural explanation. Racial and ethnic discrimination, lack of adequate schooling and health care, and other problems make it difficult to rise out of poverty.
Some sociologists have also adopted a relational perspective to understand poverty. Rather than being something that is individually determined or the product of social forces, poverty is seen as emerging through interactions between those who have resources and those who do not (Desmond and Western 2018). Exploitation is one of the transactional mechanisms between people that helps produce poverty. This could be owners exploiting workers or landlords exploiting tenants. Discrimination and violence also play a role in producing poverty.
There are a number of misconceptions when it comes to understanding the experience of poverty and who lives in poverty. Mark Rank, a well-known sociologist who studies poverty, has identified several myths that people tend to believe about poverty. Read the six myths and facts about poverty here: https://confrontingpoverty.org/poverty-facts-and-myths/.
Consequences of Poverty
Family Problems
The poor are at greater risk for family problems, including divorce and domestic violence. A major reason for many of the problems families experience is stress. Even in families that are not poor, running a household can cause stress, children can cause stress, and paying the bills can cause stress. Families that are poor have more stress because of their poverty, and the ordinary stresses of family life become even more intense in poor families. The various kinds of family problems thus happen more commonly in poor families than in wealthier families. Compounding this situation, when these problems occur, poor families have fewer resources than wealthier families to deal with these problems.
Childhood poverty often has lifelong consequences. Poor children are more likely to be poor when they become adults, and they are at greater risk for antisocial behavior when young, and for unemployment, criminal behavior, and other problems when they reach adolescence and young adulthood.
Much research conducted and/or analyzed by scholars, government agencies, and nonprofit organizations has documented the effects of poverty (and near poverty) on the lives of the poor (Lindsey, 2009; Moore, et. al., 2009; Ratcliffe & McKernan, 2010; Sanders, 2011). Many of these studies focus on childhood poverty, and these studies make it very clear that childhood poverty has lifelong consequences. In general, poor children are more likely to be poor as adults, more likely to drop out of high school, more likely to become a teenaged parent, and more likely to have employment problems. Although only 1 percent of children who are never poor end up being poor as young adults, 32 percent of poor children become poor as young adults (Ratcliffe & McKernan, 2010).

A recent study used government data to follow children born between 1968 and 1975 until they were ages 30 to 37 (Duncan & Magnuson, 2011). The researchers compared individuals who lived in poverty in early childhood to those whose families had incomes at least twice the poverty line in early childhood. Compared to the latter group, adults who were poor in early childhood
- had completed two fewer years of schooling on the average;
- had incomes that were less than half of those earned by adults who had wealthier childhoods;
- received $826 more annually in food stamps on the average;
- were almost three times more likely to report being in poor health;
- were twice as likely to have been arrested (males only); and
- were five times as likely to have borne a child (females only).
According to growing evidence, one reason poverty has these consequences is that it has certain neural effects on poor children that impair their cognitive abilities and thus their behavior and learning potential. As Greg J. Duncan and Katherine Magnuson (2011, p. 23) observe, “Emerging research in neuroscience and developmental psychology suggests that poverty early in a child’s life may be particularly harmful because the astonishingly rapid development of young children’s brains leaves them sensitive (and vulnerable) to environmental conditions.”
In short, poverty can change the way the brain develops in young children. The major reason for this effect is stress. Children growing up in poverty experience multiple stressful events: neighborhood crime and drug use; divorce, parental conflict, and other family problems, including abuse and neglect by their parents; parental financial problems and unemployment; physical and mental health problems of one or more family members; and so forth. Their great levels of stress in turn affect their bodies in certain harmful ways.
As two poverty scholars note, “It’s not just that poverty-induced stress is mentally taxing. If it’s experienced early enough in childhood, it can in fact get ‘under the skin’ and change the way in which the body copes with the environment and the way in which the brain develops. These deep, enduring, and sometimes irreversible physiological changes are the very human price of running a high-poverty society” (Grusky & Wimer, 2011, p. 2).
One way poverty gets “under children’s skin” is as follows (Evans, Brooks-Gunn, & Klebanov, 2011). Poor children’s high levels of stress produce unusually high levels of stress hormones such as cortisol and higher levels of blood pressure. Because these high levels impair their neural development, their memory and language development skills suffer. This result in turn affects their behavior and learning potential. For other physiological reasons, high levels of stress also affect the immune system, so that poor children are more likely to develop various illnesses during childhood and to have high blood pressure and other health problems when they grow older, and cause other biological changes that make poor children more likely to end up being obese and to have drug and alcohol problems.
The policy implications of the scientific research on childhood poverty are clear. As public health scholar Jack P. Shonkoff (2011, p. 12) explains, “Viewing this scientific evidence within a biodevelopmental framework points to the particular importance of addressing the needs of our most disadvantaged children at the earliest ages.” Duncan and Magnuson (2011, p. 27) agree that “greater policy attention should be given to remediating situations involving deep and persistent poverty occurring early in childhood.”
To reduce poverty’s harmful physiological effects on children, Skonkoff advocates efforts to promote strong, stable relationships among all members of poor families; to improve the quality of the home and neighborhood physical environments in which poor children grow; and to improve the nutrition of poor children. Duncan and Magnuson call for more generous income transfers to poor families with young children and note that many European democracies provide many kinds of support to such families. The recent scientific evidence on early childhood poverty underscores the importance of doing everything possible to reduce the harmful effects of poverty during the first few years of life.
Health, Illness, and Medical Care
The poor are also more likely to have many kinds of health problems, including infant mortality, earlier adulthood mortality, and mental illness, and they are also more likely to receive inadequate medical care. As noted above, poor children are more likely to have inadequate nutrition and, partly for this reason, to suffer health, behavioral, and cognitive problems. These problems in turn impair their ability to do well in school and land stable employment as adults, helping to ensure that poverty will persist across generations. Many poor people are uninsured or underinsured, and many have to visit health clinics that are overcrowded and understaffed.
According to research, poverty is responsible for almost 150,000 deaths annually, a figure about equal to the number of deaths from lung cancer (Bakalar, 2011).
Education
Poor children typically go to rundown schools with inadequate facilities where they receive inadequate schooling. They are much less likely than wealthier children to graduate from high school or to go to college. Their lack of education in turn restricts them and their own children to poverty, once again helping to ensure a vicious cycle of continuing poverty across generations. Scholars debate whether the poor school performance of poor children stems more from the inadequacy of their schools and schooling versus their own poverty. Regardless of exactly why poor children are more likely to do poorly in school and to have low educational attainment, these educational problems are another major consequence of poverty.
Crime and Victimization
Poor (and near poor) people account for the bulk of our street crime (homicide, robbery, burglary, etc.), and they also account for the bulk of victims of street crime. That chapter will outline several reasons for this dual connection between poverty and street crime, but they include the deep frustration and stress of living in poverty and the fact that many poor people live in high-crime neighborhoods. In such neighborhoods, children are more likely to grow up under the influence of older peers who are already in gangs or otherwise committing crime, and people of any age are more likely to become crime victims. Moreover, because poor and near-poor people are more likely to commit street crime, they also comprise most of the people arrested for street crimes, convicted of street crime, and imprisoned for street crime. Most of the more than 2 million people now in the nation’s prisons and jails come from poor or near-poor backgrounds. Criminal behavior and criminal victimization, then, are other major consequences of poverty.
Housing and Homelessness
The poor are, not surprisingly, more likely to be homeless than the nonpoor but also more likely to live in dilapidated housing and unable to buy their own homes. Many poor families spend more than half their income on rent, and they tend to live in poor neighborhoods that lack job opportunities, good schools, and other features of modern life that wealthier people take for granted. The lack of adequate housing for the poor remains a major national problem. Even worse is outright homelessness. An estimated 1.6 million people, including more than 300,000 children, are homeless at least part of the year (Lee, Tyler, & Wright, 2010).
Homelessness is defined by the US Department of Housing and Urban Development (HUD) as being unsheltered, having inadequate shelter, not having a permanent fixed residence, and/or lacking the resources to secure stable housing (US Department of Housing and Urban Development 2012). HUD uses four categories of homelessness:
1) Literally Homeless
Individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:
- Has a primary nighttime residence that is a public or private place not meant for human habitation; or
- Is living in a publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, and local government programs); or
- Is exiting an institution where (s)he has resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution.
Note: An individual or family only needs to meet one of the three subcategories to qualify
2) Imminent Risk of Homelessness
An individual or family who will imminently lose their primary nighttime residence, provided that:
- Residence will be lost within 14 days of the date of application for homeless assistance;
- No subsequent residence has been identified; and
- The individual or family lacks the resources or support networks needed to obtain other permanent housing.
Note: Includes individuals and families who are within 14 days of losing their housing, including housing they own, rent, are sharing with others, or are living in without paying rent.
3) Homeless Under Other Federal Statutes
Unaccompanied youth under 25 years of age or families with Category three children and youth who do not otherwise qualify as homeless under this definition but who:
- Are defined as homeless under the other listed federal statutes;
- Have not had a lease or ownership interest in permanent housing during the 60 days prior to the homeless assistance application;
- Have experienced persistent instability as measured by two moves or more during the preceding 60 days; and
- Can be expected to continue in such status for an extended period of time due to special needs or barriers
Note: Includes individuals and families who are within 14 days of losing their housing, including housing they own, rent, are sharing with others, or are living in without paying rent.
4: Fleeing/Attempting to Flee Domestic Violence
Any individual or family who:
- Is fleeing or is attempting to flee domestic violence;
- Has no other residence; and
- Lacks the resources or support networks to obtain other permanent housing
Note: Domestic Violence includes dating violence, sexual assault, stalking, and other dangerous or life-threatening conditions that relate to violence against the individual or family member that either takes place in or him or her afraid to return to, their primary nighttime residence (including human trafficking).
Who is Unhoused?
Shelter is a basic human need. Surviving unsheltered takes a toll on physical and mental health, both in terms of increased health risks and decreased access to adequate healthcare services (Kushel et al. 2006). Having safe and stable shelter supports our basic psychological needs, anchors our social relationships, and is necessary for economic stability. In 1992, the United Nations declared that adequate housing is a human right. The value of shelter to the quality of human life is clear. However, rates of houselessness in the United States are growing.

Encampments of unhoused people, sometimes called tent cities, can be seen in the US. Because many encampments are not officially legal, people living in them lack stability and live under the threat of being “swept” or evicted. In 2017, 255 encampments were reported across the United States, ranging in size from 10 to over 100 people living in them, but that number does not include many more illegal encampments. Encampments are a response to the fact that shelters constantly operate at maximum capacity, and communities do not have enough affordable housing (Tent Cities in America 2022).
Shelters provide needed temporary immediate service to over 1.5 million Americans each year. Many nonprofit organizations also provide additional supportive services and housing assistance for families and individuals. Day shelters also offer support and food to unhoused people. Some churches allow people to car-camp and/or erect tents on the church property and have provided hygiene centers that include showers, hand-washing, laundry, and food services.
Tensions exist between tent dwellers, staff, and users of shelters, and the business and home-owning communities since being unhoused is messy, and people who are unhoused are vulnerable to crime and abuse. Advocates for people who are unhoused argue for a location close to needed city services; accessibility is important when walking, bicycling, and public transportation are the primary modes of getting around.
Who is Housing Insecure?
Housing insecurity is a broad set of challenges, such as the inability to pay rent or utilities or the need to move frequently (Goldrick-Rab et al. 2019). According to government definitions, if a person or a family are within 14 days of losing their housing and does not have the resources “to obtain permanent housing,” they are considered by HUD to be “at imminent risk of homelessness.” Housing instability can be harder to see than houselessness. Signs of housing instability include missing a rent or utility payment, having a place to live but not having certainty about meeting basic needs, experiencing formal or informal evictions, foreclosures, couch surfing, and frequent moves. It can also include exposure to health and safety risks such as mold, vermin, lead, overcrowding, and personal safety fears such as abuse.
Of all Americans, 10–15 percent are housing insecure. A cost burdened household is a household in which 30% or more of a household’s monthly gross income is dedicated to housing, making it difficult to pay for necessities. Households that pay more than 30% of their income on housing face housing instability and insecurity. One study used a residual-income approach, which estimates whether households have enough money left after paying rent and utilities to afford a decent standard of living, and found that 19.2 million (62.1%) were cost burdened. However we measure it, the cost burden puts people at risk for being homeless (National Low Income Housing Coalition 2022).
The College and University Basic Needs Insecurity Report found that being female, transgender, Native American, Black, Latinx, and 21 or older increased your chances of being housing insecure or homeless. Although men, people who are White, young White students (18–20), and athletes were less likely to experience houselessness or housing insecurity, they still did so in double-digit percentages (Goldrick-Rab et al. 2019). College students are another group of people who are often housing insecure.
Rural communities have unique housing pressures, especially in resort areas where housing stock tends to be inadequate. Even when work is plentiful, houselessness can be only a step away. One job loss, one major illness, or commonly, one landlord who chooses to sell their property rather than continue to rent, and houselessness occurs.
Confronting the Problem
It is common for people concerned with problems of housing insecurity and houselessness to focus resources and programming on fixing the personal problems of people who are unhoused. Many shelter and housing programs offer social support, motivational coaching, counseling, and even “life skills” classes. When we consider that many people who are unhoused have experienced trauma, mental health crises, and substance use disorder before becoming homeless, this approach makes sense. It makes even more sense when we become aware of the trauma, alienation, mental health crises, and substance use patterns that can develop while people are unsheltered. Many people who are unhoused are often in need of robust social and therapeutic support as they make their way back to stability.
However, many housing advocates and unhoused people view the “what’s-wrong-with-the-homeless” perspective as deficit-based, focusing on the problems or limits of people who are houseless. They argue that this approach obscures the real reasons for our current housing crisis—not enough affordable housing. For every 100 extremely low-income renters, there are just 31 affordable units (National Coalition for the Homeless 2020).
Unlike “what’s wrong with the homeless” narratives, sociologists most commonly look for structural reasons to explain who has a home. These structural explanations depend on a solid understanding of social stratification. Social class, race, and gender relate to housing instability. Black people are disproportionately houseless, as are Native Americans. 40% of unaccompanied, unhoused youth identify as LGBTQIA+ Socially constructed ideas of normal or acceptable identities hinder many people from accessing shelter, housing, and many other services. Specifically, in the case of houseless shelters, transgender women may be refused admittance by the women’s shelter and are at risk of violence at the men’s shelter (National Center for Transgender Equality 2019). Many of the structural causes of poverty also impact whether a person has a home.
A relatively new and innovative approach to addressing houselessness is the Housing First model. Simply put, the idea is that if people have stable housing, solving other problems becomes more likely. Having a secure home, consistent access to schooling, transportation, and support services means that people can be more successful in addressing overlapping issues such as mental health, addiction, and seeking employment.
Many communities and housing service providers have adopted the Housing First approach. Utah’s Housing First approach is a model for how these services can be made available. Through the collaboration of many local organizations and donations from local churches, real permanent semi-communal housing and services such as counseling are provided. One location, Grace Mary Manor, provides affordable housing for 84 formerly houseless people. Through programs like this, Utah decreased its houseless population by 91 percent (McEvers 2015).
Community Efforts
Individuals and communities are taking the initiative to improve neighborhood livability by increasing resources that benefit families, such as informal libraries, green spaces, and art houses.
Understanding, acknowledging, and repairing past injustices are critical steps toward making homes equitably available to everyone. Tenants unions are working to empower renters and reduce evictions. Housing advocates, many of whom have been unhoused, are lobbying for more funding for affordable housing. Nonprofit housing service providers continue developing and delivering trauma-informed services that support the social and emotional needs of people striving for housing stability. In addition, community-based efforts resource and support residents of historically marginalized neighborhoods. Each of these interdependent solutions creates stable housing, a component of social justice.
Lessons from Other Societies
Poverty and Poverty Policy in Other Western Democracies
There is typically more poverty in the US than in other western democracies. Why is this? Several differences between the United States and the other nations stand out (Brady, 2009; Russell, 2011). First, other Western nations have higher minimum wages and stronger labor unions than the United States has, and these lead to incomes that help push people above poverty. Second, these other nations spend a much greater proportion of their gross domestic product on social expenditures (income support and social services such as child-care subsidies and housing allowances) than does the United States.
As sociologist John Iceland (2006, p. 136) notes, “Such countries often invest heavily in both universal benefits, such as maternity leave, child care, and medical care, and in promoting work among [poor] families…The United States, in comparison with other advanced nations, lacks national health insurance, provides less publicly supported housing, and spends less on job training and job creation.” Block and colleagues agree: “These other countries all take a more comprehensive government approach to combating poverty, and they assume that it is caused by economic and structural factors rather than bad behavior” (Block et al., 2006, p. 17).
The experience of the United Kingdom provides a striking contrast between the effectiveness of the expansive approach used in other wealthy democracies and the inadequacy of the American approach. In 1994, about 30 percent of British children lived in poverty; by 2009, that figure had fallen by more than half to 12 percent. Meanwhile, the US 2009 child poverty rate was almost 21 percent.
Britain used three strategies to reduce its child poverty rate and to help poor children and their families in other ways. First, it induced more poor parents to work through a series of new measures, including a national minimum wage higher than its US counterpart and various tax savings for low-income workers. Because of these measures, the percentage of single parents who worked rose from 45 percent in 1997 to 57 percent in 2008. Second, Britain increased child welfare benefits regardless of whether a parent worked. Third, it increased paid maternity leave from four months to nine months, implemented two weeks of paid paternity leave, established universal preschool (which both helps children’s cognitive abilities and makes it easier for parents to afford to work), increased child-care aid, and made it possible for parents of young children to adjust their working hours to their parental responsibilities (Waldfogel, 2010). While the British child poverty rate fell dramatically because of these strategies, the US child poverty rate stagnated.
In short, the United States has more poverty than other democracies in part because it spends so much less than they do on helping the poor. The United States certainly has the wealth to follow their example, but it has chosen not to do so, and a high poverty rate is the unfortunate result. As the Nobel laureate economist Paul Krugman (2006, p. A25) summarizes this lesson, “Government truly can be a force for good. Decades of propaganda have conditioned many Americans to assume that government is always incompetent…But the [British experience has] shown that a government that seriously tries to reduce poverty can achieve a lot.”
Applying Social Research
Unintended Consequences of Welfare Reform
Aid to Families with Dependent Children (AFDC) was a major US government program to help the poor from the 1930s to the 1960s. Under this program, states allocated federal money to provide cash payments to poor families with children. Although the program was heavily criticized for allegedly providing an incentive to poor mothers both to have more children and to not join the workforce, research studies found little or no basis for this criticism. Still, many politicians and much of the public accepted the criticism as true, and AFDC became so unpopular that it was replaced in 1997 by a new program, Temporary Assistance for Needy Families (TANF), which is still a major program today.
TANF is more restrictive in many respects than AFDC was. In particular, it limits the amount of time a poor family can receive federal funds to five years, and allows states to set a shorter time to receive funds, which many have done. In addition, it requires single parents in families receiving TANF funds to work at least thirty hours a week (or twenty hours a week if they have a child under the age of 6) and two parents to work at least thirty-five hours per week combined. In most states, going to school to obtain a degree does not count as the equivalent of working and thus does not make a parent eligible for TANF payments. Only short-term programs or workshops to develop job skills qualify.
Did welfare reform involving TANF work? Many adults formerly on AFDC found jobs, TANF payments nationwide have been much lower than AFDC payments, and many fewer families receive TANF payments than used to receive AFDC payments. These facts lead many observers to hail TANF as a successful program. However, sociologists and other scholars who study TANF families say the numbers are misleading because poor families have in effect been simply excluded from funding because of TANF’s strict requirements. The reduced payments and lower number of funded families indicate the failure of TANF, they say, not its success.
Several problems explain why TANF has had these unintended consequences. First, many families are poor for many more than five years, and the five-year time limit under TANF means that they receive financial help for only some of the years they live in poverty. Second, because the federal and state governments provide relatively little financial aid for child care, many parents simply cannot afford to work, and if they don’t work, they lose their TANF payments. Third, jobs are certainly difficult to find, especially if, as is typical, a poor parent has relatively little education and few job skills, and if parents cannot find a job, they again lose their TANF payments. Fourth, many parents cannot work because they have physical or mental health problems or because they are taking care of a family member or friend with a health problem; these parents, too, become ineligible for TANF payments.
Sociologist Lorna Rivera put a human face to these problems in a study of fifty poor women in Boston, Massachusetts. She lived among them, interviewed them individually, and conducted focus groups. She found that TANF worsened the situation of these women for the reasons just stated, and concluded that welfare reform left these and other poor women “uneducated, underemployed, underpaid, and unable to effectively move themselves and their families forward.”
Ironically, some studies suggest that welfare reform impaired the health of black women for several reasons. Many ended up with jobs with long bus commutes and odd hours, leading to sleep deprivation and less time for medical visits. Many of these new workers also suddenly had to struggle to find affordable day care for their children. These problems are thought to have increased their stress levels and, in turn, harmed their health.
The research by social scientists on the effects of TANF reveals that the United States took a large step backward when it passed welfare reform in the 1990s. Far from reducing poverty, welfare reform only worsened it. This research underscores the need for the United States to develop better strategies for reducing poverty similar to those used by other Western democracies.
The United States greatly reduced poverty during the 1960s through a series of programs and policies that composed The War on Poverty, passed under the presidency of Lyndon Johnson.

The poverty rate declined from 22.2 percent in 1960 to a low of 11.1 percent in 1973 before fluctuating from year to year and then rising since 2000. Other democracies have much lower poverty rates than the United States because, as many scholars believe, they have better funded and more extensive programs to help their poor (Brady, 2009; Russell, 2011).
The lessons from the 1960s’ war on poverty and the experience of other democracies are clear: It is very possible to reduce poverty if, and only if, a nation is willing to fund and implement appropriate programs and policies that address the causes of poverty and that help the poor deal with the immediate and ongoing difficulties they experience.
A major reason that the US poverty rate reached its low in 1973 and never went lower during the past four decades is that the United States retreated from its war on poverty by cutting back on the programs and services it had provided during that good war (Soss, et. al., 2007). Another major reason is that changes in the national economy during the past few decades have meant that well-paying manufacturing jobs have been replaced by low-paying service jobs with fewer benefits (Wilson, 2010). Yet this has also happened in other democracies, and their poverty rates remain lower than the US rate because, unlike the United States, they have continued to try to help their poor rather than neglect them.
Why does the United States neglect its poor? Many scholars attribute this neglect to the fact that many citizens and politicians think the poor are poor because of their own failings. As summarized by sociologist Mark R. Rank (Rank, 2011), these failings include “not working hard enough, failure to acquire sufficient skills, or just making bad decisions.” By thus blaming the poor for their fate, citizens and politicians think the poor do not deserve to have the US government help them, and so the government does not help, or at least not nearly as much as other democracies do. We have seen that the facts do not support the myth that the poor lack motivation to work, but that does not lessen the blame given the poor for being poor.
To renew the US effort to help the poor, it is essential that the actual facts about poverty become better known so that a fundamental shift in thinking about poverty and the poor can occur. Rank (Rank, 2011) says that one aspect of this shift must include the recognition, as noted at the beginning of this chapter, that “poverty affects us all” because it costs so many tax dollars to help the poor and because a majority of the public can expect to be poor or near poor at some point in their lives.
A second aspect of this shift in thinking, adds Rank, is the recognition (following a blaming-the-system approach) that poverty stems much more from the lack of opportunity, lack of jobs, declining government help for the poor, and other structural failings of American society than from individual failings of the poor themselves. A third aspect of this shift in thinking, he concludes, is that poverty must become seen as a “moral problem” and as “an injustice of a substantial magnitude” (Rank, 2011). As he forcefully argues, “Something is seriously wrong when we find that, in a country with the most abundant resources in the world, there are children without enough to eat, families who cannot afford health care, and people sleeping on the streets for lack of shelter” (Rank, 2011). This situation, he says, must become seen as a “moral outrage” (Rank, 2011).
Sociologist Joe Soss (Soss, 2011) argues that a change in thinking is not enough for a renewed antipoverty effort to occur. What is needed, he says, is political protest and other political activity by the poor and on behalf of the poor. Soss notes that “political conflict and mass mobilization played key roles” in providing the impetus for social-welfare programs in the 1930s and 1960s in the United States, and he adds that the lower poverty rates of Western European democracies “are products of labor movements, unions, and parties that mobilized workers to demand more adequate social supports.”
These twin histories lead Soss to conclude that the United States will not increase its antipoverty efforts unless a new wave of political activity by and on behalf of the poor arises. As he argues, “History suggests that major antipoverty victories can be achieved. But they won’t be achieved by good will and smart ideas alone. They’ll be won politically, when people—in poor communities, in advocacy groups, in government, in the academy, and elsewhere—mobilize to advance antipoverty agendas in ways that make politics as usual untenable.”

If a renewed antipoverty effort does occur for whatever reason, what types of programs and policies show promise for effectively reducing poverty? Efforts to reduce poverty must address first and foremost the structural basis for poverty while not ignoring certain beliefs and practices of the poor that also make a difference. An extensive literature on poverty policy outlines many types of policies and programs that follow this dual approach (Cancian & Danziger, 2009; Greenberg, et. al., 2007; Iceland, 2006; Lindsey, 2009; Moore et al., 2009; Rank, 2004). If these were fully adopted, funded, and implemented, as they are in many other democracies, they would offer great promise for reducing poverty.
As two poverty experts recently wrote, “We are optimistic that poverty can be reduced significantly in the long term if the public and policymakers can muster the political will to pursue a range of promising antipoverty policies” (M. Cancian & S. Danziger, 2009, p. 32). Although a full discussion of these policies is beyond the scope of this chapter, the following measures are commonly cited as holding strong potential for reducing poverty, and they are found in varying degrees in other Western democracies:
- Adopt a national “full employment” policy for the poor, involving federally funded job training and public works programs, and increase the minimum wage so that individuals working full-time will earn enough to lift their families out of poverty.
- Increase federal aid for the working poor, including higher earned income credits and child-care subsidies for those with children.
- Establish well-funded early childhood intervention programs, including home visitations by trained professionals, for poor families.
- Provide poor families with enough income to enable them to pay for food and housing.
- Increase the supply of affordable housing.
- Improve the schools that poor children attend and the schooling they receive and expand early childhood education programs for poor children.
- Provide better nutrition and health services for poor families with young children.
- Establish universal health insurance.
- Increase Pell Grants and other financial aid for higher education.
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