You Can't Afford to Overlook Community Poverty

Community poverty makes it hard to maintain an attractive neighborhood and community, complete with grocery stores, pharmacies, sandwich shops, and other basic retail.

It seems to be out of fashion to talk about poverty or poor neighborhoods, but it's a conversation we desperately need to have. We need to stop pretending it's not the single determining factor in some neighborhoods from the most rural to the most urban.

We found a great overview of poverty in the United States, which points out how the recent great recession has made it likely that suburbanites too encounter poverty on nearly a daily basis. It's a big drag on our economy overall. Suburbanization of poverty should replace our outmoded stereotypes of all poor people living in urban areas.  The largest cities and the most rural areas continue to have substantial populations of people who are not able to meet basic needs, but the suburbs could and should become less complacent about what is happening in their midst.

So isn't it time we start being serious about eliminating both situational poverty of individuals and the systems in our cities and towns that lead to entire neighborhoods composed mostly of economically disadvantaged people.



After a career of working with poverty issues in one way or another, I can tell you that having a concentration of poverty doesn't improve human life. It's what holds back our world (see the important books of Jeffrey Sachs, The End of Poverty, and Thomas Friedman, Hot, Flat and Crowded 2.0, in this regard).

The lack of community economic development is such an impediment to forgotten neighborhoods. A good book for those of you in the U.S. who would actually like to do something about the situation is Community Economic Development Handbook: Strategies and Tools to Revitalize Your Neighborhood.

In a metropolitan area, the wealthier suburbs often contribute greatly to the community poverty mentality and reality in other suburbs. We think this is a losing proposition for middle-class and upper middle-class areas.

In the next section we explain why.

Community Poverty Represents Lost Productivity

If you run a firm with 10 employees, and one doesn't contribute, you get rid of the non-contributing member. Or if you're in a situation where you can't fire them, because of legal difficulties or your own timidity, you try your best to make them a productive member of the team. I know; I've been there. You maneuver them into this nook and cranny of the business, and then that, until you find some way that they are pulling their weight.

And why would we think that the non-producing part of our community would be any different?

If you are an elected official, you may think a little distressed area of community poverty is well hidden, but the bad news is that rail, planes, transit, and highways all display community poverty quite well. Your local television news or Internet maps will blow your cover. So it won't go away. A uniformly low-income neighborhood is the least likely of urban or community problems to heal itself.

Individual families and individuals do lift themselves out of poverty, through hard work, a little luck, and education. Tools such as individual development accounts are helpful solutions for particular youth, immigrants, and households. (This is a U.S. program but one that should be imitated widely.) But community poverty area does not improve spontaneously.

A few areas in the U.S. might make it over the crest of the hill through dedicated and skilled professionals effectively targeting Community Development Block Grant and many other federal, state, and local programs into a particular area. Almost every county in the U.S. is part of a community action agency, which is a private organization (with public official representation) charged with fighting community poverty.

Occasionally a single new employer will lift the tide. But mostly it takes difficult and detailed block by block community development and intense effort with individuals to overcome poverty, and not merely relocate it to another area of low-income neighborhood.


The Role of Racial and Ethnic Segregation in Poverty

Good research now shows that the income disparities and wealth disparities between majority and minority households continues to hold true as a generalization.

Discrimination still certainly exists, but even more importantly, racial segregation in residential areas and in the social arena separates African-American and Hispanic households from the best schools, the social networks by which we hear about employment, and the variety of job opportunities that are necessary to begin on a low rung of the ladder and have a better opportunity waiting for you in a couple of years.

Inclusive communities help people of all races to lose their stereotypes and to be more willing to interact with other racial and ethnic groups in the workplace.

They also help children, young adults, and adults learn how to adapt to differences in the workplace and at school without necessarily having to lose important elements of ethnic identity. Inclusive zoning, in which zoning ordinances consciously aim at providing a variety of housing types and prices, can promote integration.

So civic and community leaders, continue to work to promote an inclusive multi-ethnic residential environment and inter-group understanding. In metropolitan areas with high proportions of immigrants and refugees, encourage your folks to learn something about the other cultures and to integrate the newcomers into the mainstream culture as soon as possible.

We eliminate community poverty only when we're inclusive.


Addressing Individual or Household Poverty

Our emphasis on community poverty doesn't mean that we think systemic racism is the main reason people are in poverty. Individual factors vary hugely, but certainly these are some explanatory elements:

• Lack of sufficient education to give versatility in the workforce

• Lack of financial management skills and understanding of traps such as payday loans or other predatory lending practices

• Bad luck with medical bills, lawsuits, unemployment, foreclosure

• Life-changing events such as imprisonment and divorce

• Having too many children too young

• Lack of a social network that understands and transmits coping skills, provides appropriate emotional support, and confronts anti-social behaviors

• Addictions and/or bad decisions made when under the influence of a mind-altering drug

• Depression, often covering most of a life in community poverty areas, and also "running in families" in areas where poverty is concentrated

• Lack of understanding of find job prospects, obtain a job, and manage the "soft skills" of holding a job such as giving the job priority over other distractions, showing up on time, calling when sick or late, and so forth.


Community Support for Individual Poverty Cases


Your community at large can and should provide a number of types of assistance to individuals in poverty:

• Convenient access to mental health and substance abuse providers

• A well-run public transportation system that travels all the arterial roads

• Support for social service providers, faith-based groups, and governmental agencies that help individuals combat poverty

• Inclusive zoning promoting a mix of housing types and price points

• A dynamic community mental health emphasis in areas of need

• Community-based financial institutions that will be trusted by minorities and immigrants and that can therefore drive the predatory lenders out of business

• Encouragement of Individual Development Account (IDA) programs, a type of savings program helping low-income households target specific life events, such as home ownership, for which they are saving

• Attention to environmental justice, so that undesirable land uses such as sanitary landfills don't further depress values for poor families.


Reviewing Why Worry About Community Poverty

At the bottom of the page, we just want to call out again why we think it's critical that whether you are left-wing or right-wing or clueless, you need to think about poverty in your community.



Instead of blaming the poor person for being lazy or stupid, just think of every household that doesn't make enough money as a household that isn't producing enough income for the community as a whole.  Part of your job as a community leader is to work on poverty issues if they are prevalent where you live.

The successful nations are the ones that figure out how to make a very high percentage of their citizens productive in making something someone else in the world wants to buy.

Wake up, U.S. and other countries that tolerate too much poverty!

This page became so long and there were so many important ideas to express and illustrate that we've now made another page to talk about the concentration of poverty into relatively few neighborhoods, and what to do about those neighborhoods. Please keep reading, as many people really appreciate these pages.

About Neighborhoods:


> > Community Poverty


Subscribe to our mailing list

* indicates required