What Will It Really Take to Get People Out of Poverty?

The Poverty Solution is showing what’s possible when we stop managing poverty—and start ending it.

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• I. Introduction
• II. Root Causes
• III. What Doesn’t Work
• IV. What Will Work
• V. Real Stories
• VI. Call to Action

I. Introduction: Time to Stop Playing Small

For decades, our national approach to poverty has been built on weak tools and good intentions. Band-aid solutions, siloed systems, and short-term thinking have defined much of the U.S. response to poverty. From government programs to nonprofit interventions, we’ve too often measured success by how many services were delivered instead of how many lives were truly changed. But today, we stand at a crossroads: do we continue to patch the cracks in a broken system, or do we rebuild the foundation itself?

It’s time to stop playing small.

Ending poverty is not about expanding food stamp eligibility or creating another job readiness workshop. Those things may help—temporarily—but they don’t address the deeper systems that keep people stuck. To truly eliminate poverty, we must shift our understanding of what poverty actually is, who is affected, and how change must happen. Poverty is not just a lack of money; it is the result of systemic barriers, generational inequity, and geographic disinvestment (and more). It is maintained by outdated policies, underfunded systems, and narratives that blame the individual instead of questioning the structure.

The Band-Aid Problem

Band-aid solutions look good on paper. They’re fast, they’re measurable, and they give the illusion of progress. Free workshops. Emergency rent assistance. Resume building. But here’s the truth: these interventions are like handing someone a fire extinguisher while their entire house is on fire. They’re not useless—they can buy time—but without addressing the root cause, we’re just delaying the inevitable.

In cities across America, we see the same cycle. A struggling mom gets help paying for daycare, but loses it the moment she accepts a promotion. A teenager is offered a mentorship program but still lives in a food desert, attending under-resourced schools. A father finds work but has no sick leave, so when his child gets sick, he loses the job and starts over again. These are not failures of the individuals. They are failures of the system.

What if, instead of constantly putting people through the wringer, we invested in systems that honored their humanity and set them up to thrive? That is the shift we must make—and it starts with admitting that band-aids don’t heal structural wounds.

Poverty Is More Than Income

Poverty has long been defined by a number on a chart. In the United States, the federal poverty line is based on a 1960s formula that estimated a family's needs using the cost of a minimal food budget—multiplied by three. Though it is adjusted annually for inflation, it fails to reflect the true cost of living today. It does not account for modern high-cost expenses like housing, child care, healthcare, transportation, debt, or regional cost-of-living differences. It also overlooks the compounding costs of chronic disadvantage. As a result, the poverty line significantly underestimates what it actually takes for families to meet their basic needs and achieve stability.

In truth, poverty is multidimensional. It is:

• Systemic: Embedded in how our institutions operate—education, healthcare, housing, criminal justice, and employment.
• Generational: Passed down through families due to historic disinvestment, trauma, and lack of access to opportunity.
• Geographic: Concentrated in areas where services are scarce, transportation is limited, and infrastructure is crumbling.
• Psychological: Carved into the identity of those who have been told—directly or indirectly—that they are less valuable or less capable.
• Cultural and Racialized: Poverty disproportionately affects Black, Indigenous, Latinx, and other marginalized communities due to centuries of systemic discrimination—ranging from redlining and school segregation to wage gaps and unequal access to opportunity. For example, while the national poverty rate in the U.S. hovers around 11%, it's approximately 20% for Black Americans and over 23% for Native Americans, highlighting the enduring impact of structural inequities. These disparities are not accidental; they are the result of intentionally designed policies and practices that continue to disadvantage communities of color today.*

When we define poverty only by income, we ignore the weight of all these forces. We design programs that treat symptoms but miss the disease. We congratulate ourselves for economic development while ignoring displacement. We offer financial literacy classes without asking why someone’s neighborhood has no bank.

This is why the solution must be bigger than any one program. Poverty is held in place by systems—and systems must be redesigned.

*This does not imply that today’s policymakers are deliberately working to keep people in poverty. Rather, it acknowledges that many foundational systems—such as housing, education, healthcare, and employment—were built with intentional bias on frameworks that excluded or marginalized certain groups. Unless these systems are actively reformed, they will continue to produce unequal outcomes, regardless of intent.

A New Definition of Success

If we want to end poverty, we need to redefine what success looks like. It’s not about counting how many people are enrolled in a program. It’s about how many people graduate into stability, choice, and joy. It’s about thriving, not surviving.

That means shifting from:

• Outputs to Outcomes
• Charity to Justice
• Service delivery to Structural change

The question is no longer "How can we help people cope with poverty?" The question must become: "How can we change the systems so they never fall into poverty in the first place?"

Coordinated Systems Change

Ending poverty requires systems change at every level—federal, state, local, and community. That means aligning policies, funding, and data across housing, health, education, and employment. It means removing the silos that force families to tell their trauma stories over and over to different case managers, just to get help.

Imagine a world where government programs talk to each other, where eligibility for benefits is universal and automatic, and where funding follows the person—not the agency. Imagine a world where success is defined by upward mobility, not bureaucratic compliance.

That’s coordinated systems change—and it’s already being tested in pilot programs across the country. From Tennessee’s TANF pilots like Empower Upper Cumberland, Strong Families of Northeast Tennessee and The East Tennessee Collaborative with the United Way of Greater Knoxville— we’re seeing what’s possible when we stop managing poverty and start disrupting it.

Bold Policy Reform: A Top-Down, Bottom-Up Strategy

We cannot legislate poverty away with half-measures or fragmented fixes. What we need is bold, coordinated policy reform that works from both ends of the system—a top-down and bottom-up approach. This means shifting policies at the highest levels of government, while also investing in people and communities on the ground. We must stop treating families like case numbers and start treating them as partners—experts in their own lives, capable of growth when systems are built to support and not restrict.

True transformation means:

• Phasing in transitional benefits to replace the benefits cliff, so that no family is punished for progress.
• Embedding two-generation support models that serve both children and caregivers—lifting the whole family together.
• Investing equitably in rural and urban communities, recognizing that different geographies face different barriers but deserve the same opportunities.
• Making early childhood education universal, affordable, and culturally relevant to give every child a strong foundation.

But policy reform isn’t only the job of the government. It’s also a call to philanthropists, funders, and institutional leaders—those in positions of power or with access to wealth—to co-create systems that work. These changemakers must align their influence and resources to drive equitable outcomes, not just charitable outputs.

This is not just a government fix or a grassroots fix—it’s a whole-system strategy. The top must listen to the bottom, and the bottom must be given tools to rise. That’s what it means to lead change from both ends: system-level reform powered by dignity-first, family-centered design.

Empowered, Community-Driven Leadership

The people closest to the problem are closest to the solution, but they are often farthest from the power and resources. That must change.

Empowered leadership means:

• Investing in grassroots organizers and local changemakers
• Including those with lived experience at decision-making tables
• Trusting communities to define their own metrics of success

When we listen to those who live at the intersection of struggle and resilience, we create solutions that actually work. We move from designing for people to designing with them.

Ending poverty is not about saving people. It’s about shifting power.

A Final Word

We cannot afford to keep doing what we’ve always done and expect different results. Poverty is not inevitable. It is not a natural condition. It is a man-made system—and systems can be redesigned.

This paper is not about wishful thinking. It is about evidence, equity, and vision. It's about what it will really take to end poverty—and why we must finally be brave enough to try.

It’s time to stop playing small. 

II. The Root Causes of Poverty (Not Just the Symptoms)

If we want to design a future where poverty is no longer the default condition for millions, we have to start with a deeper understanding of where it comes from. Poverty is not simply the result of bad luck or poor choices. It is the predictable outcome of systems that were never built for everyone to thrive. In fact, many of the systems we rely on today—education, housing, employment, healthcare—were designed with exclusion in mind.

Let’s take a closer look at the true root causes of poverty:

1. Structural Inequality

Structural inequality refers to the systemic disparities that are baked into the institutions we interact with daily. These include:

• Education: Underfunded schools in low-income areas. Segregated school districts. Lack of access to technology and experienced teachers.
• Housing: Discriminatory lending practices. Redlining. Limited affordable housing. Rent hikes that far outpace income.
• Racism and Ableism: Black and Indigenous families are overrepresented among those in poverty. Disabled individuals face added barriers to employment, healthcare, and education.
• Gender Gaps: Women, especially single mothers, are more likely to live in poverty. Gender pay gaps and caregiving responsibilities further limit earning potential.*

These disparities are not accidental. They are the result of policies, practices, and funding decisions that advantage some while disenfranchising others.

* Women in the U.S. still earn roughly 83–85 cents for every dollar a man earns, with larger penalties for mothers and women of color. These gaps reflect persistent structural inequities and raise serious questions about fairness—and equity in policy reform.¹ ²

¹ “Gender Pay Gap Statistics 2025,” Equal Pay Today (2025), e.g., women in the U.S. earned 83.6 cents per dollar in 2024. (equalpaytoday.org)

² Ashley Hutson, Joel Jennings & Gregory Shufeldt, “The gender pay gap is still a problem this Equal Pay Day,” Missouri Independent, March 25, 2025, reporting a national gap of approximately 84 cents per dollar. (missouriindependent.com)

2. The Benefits Cliff

One of the most ironic and damaging features of our safety net is the so-called “benefits cliff.” This occurs when a small increase in income causes a family to lose access to critical supports like food assistance, childcare, or healthcare—often resulting in a net financial loss.

This creates a perverse disincentive to work or accept raises. Imagine being offered a $2/hour raise and having to decline it because it would cause you to lose $1,200/month in benefits. For many families, the choice isn’t between independence and dependence—it’s between survival and collapse.

We tell people to "work harder," yet we’ve built a system that punishes progress. If we don’t address the benefits cliff, we will continue trapping families in cycles of instability.

3. Generational Trauma & Disconnection

Poverty is not only economic—it’s emotional and psychological. For families who have experienced poverty for multiple generations, there is often a sense of hopelessness, mistrust, and disconnection from systems that have failed them time and again.

Children growing up in poverty experience higher levels of toxic stress, which affects brain development, academic achievement, and emotional regulation. The trauma of eviction, food insecurity, and family instability leaves deep scars.

And when parents carry unhealed trauma from their own childhoods, it can continue to ripple across generations unless intentional healing and support are offered.

4. Policy Failure

Perhaps the most frustrating cause of poverty is the sheer inadequacy and fragmentation of our current policies. Programs are:

• Outdated: Based on decades-old assumptions and income thresholds
• Disjointed: Families must navigate multiple systems with different eligibility criteria, case managers, and timelines
• Inflexible: Unable to adapt to families’ changing needs or local contexts
• Undignified: Often force people to prove their poverty repeatedly, reinforcing shame and dependency

This isn’t just inefficient—it’s cruel. It puts the burden on families to navigate complexity, when our systems should be doing the hard work of simplification and alignment.

Understanding these root causes is the first step. The next is designing interventions that address them—not just treat the surface-level symptoms.

In the next section, we’ll explore what it will really take to shift from management to transformation—and build a poverty-free future that honors the dignity and potential of every human being.

III. What Doesn’t Work: Lessons from the Past

While we’ve seen powerful moments of progress and innovation in the fight against poverty, many of our most common strategies have consistently fallen short. Despite billions of dollars invested and decades of intervention, poverty remains stubbornly persistent. Why? Because we’ve been using broken tools for a broken system.

Let’s break down the most common missteps:

1. Short-Term Job Programs Without Long-Term Pathways

Many workforce development efforts are centered around short-term employment training or rapid placement programs. The problem? These programs often place people in low-wage, dead-end jobs with no opportunities for advancement.

Imagine being trained for a job that doesn’t offer benefits, won’t support your family, and could be replaced by automation in a year. That’s not mobility—that’s a treadmill.

What people need are long-term pathways to careers, not just jobs. Pathways that include skill-building, credentials, mentorship, and wraparound supports. Otherwise, these programs create the illusion of success—people get placed, but not progressed.

2. Programs That Punish Ambition

Too many systems inadvertently punish people for trying to improve their lives. The benefits cliff is one obvious example—but it goes deeper than that. Many programs are built with rigid income ceilings, asset tests, and time limits that penalize growth.

You saved a few hundred dollars for an emergency? Now you’re ineligible. You took on a few extra shifts to cover school supplies? Now you’ve triggered a benefits review.

This sends the message that ambition is risky. That trying to improve your circumstances might come at the cost of your stability. And for people already walking a financial tightrope, that risk is often too high.

3. “Work-First” Models Without Wraparound Supports

The idea that the best way out of poverty is to "just get a job" has driven decades of policy—but it’s an oversimplification that doesn’t account for real life.

Work-first models often ignore the barriers that make work unsustainable for many people: lack of transportation, child care, mental health support, or a criminal record. Without addressing these challenges, pushing people into jobs only sets them up to fail.

And when they do fail, the narrative becomes: “They didn’t want to work,” rather than “The system set them up to fall.”

To make work work, we need holistic, wraparound support systems that help people keep their jobs and move forward—not just check the box of employment.

4. Top-Down Solutions That Ignore Lived Experience

Too many anti-poverty strategies are designed in boardrooms far removed from the communities they aim to serve. Policies are written by people who have never lived with food insecurity, navigated public transit with toddlers, or faced the threat of eviction.

This disconnect creates programs that are out of touch, overly complex, or simply irrelevant to people’s real lives. It also erodes trust. When communities aren’t part of the solution, they’re less likely to engage, invest, or believe in it.

The most effective programs are co-designed with the people who live the reality every day. Their insights, resilience, and innovation are assets—not afterthoughts.

In the next section, we’ll look at what does work—and how we can reimagine the fight against poverty using strategies rooted in dignity, empowerment, and systems transformation.

IV. What Will Work: A New Framework for Ending Poverty

To move from managing poverty to truly ending it, we must adopt a bold new framework—one built on dignity, equity, and effectiveness. Poverty is not a singular problem with a silver bullet solution. It’s a complex, interconnected system of disadvantages that must be unraveled with equally comprehensive, interconnected responses. Below are five pillars that offer a path forward:

A. Economic Stability with Dignity

At the foundation of any poverty-alleviation strategy must be economic stability—but not at the cost of human dignity. People need income that meets their needs, opportunities to grow wealth, and systems that support—not sabotage—their progress.

• Living Wages and Transitional Benefits: It’s not enough to have a job. Wages must be sufficient to meet basic needs—housing, food, childcare, transportation. Transitional benefits must replace benefits cliffs, phasing out supports gradually as income increases so that no one is punished for earning more.
• Banking and Credit Access: Many low-income households are unbanked or underbanked, relying on predatory lenders. Equitable access to credit, savings accounts, and financial institutions must be a basic right—not a luxury.
• Affordable Housing: Housing is the single largest expense for most families. Without stable, safe, affordable housing, nothing else matters. Local, state, and federal policies must support housing-first strategies, rent-to-own programs, and zoning reform to ensure housing supply meets demand.
• Wealth-Building Tools: True stability means building wealth. Tools like matched savings accounts, Individual Development Accounts (IDAs), and Child Development Accounts (CDAs) empower families to save, invest, and plan for the future. These are not handouts—they’re launchpads.

B. Whole-Family Empowerment

Families don’t live in silos, and neither should our solutions. Whole-family (or 2Gen) approaches create pathways for children and parents together—because when one thrives, so does the other.

• Two-Generation Models: These integrate services for parents (job training, education, financial coaching) with services for children (early learning, afterschool programs, pediatric care). Coordinating these services produces generational impact.
• Child Care, Education, and Transportation: Without affordable child care and reliable transportation, employment and education become inaccessible. Investment in universal child care, public transit, and community-based education is essential.
• Mental Health Services: Trauma, stress, and mental illness are both causes and consequences of poverty. Expanding access to culturally competent, affordable mental health services supports both individual healing and family stability.
• Family-Centered Coaching: Coaching models that center on family goals, values, and strengths—not deficits—create deeper engagement and more sustainable progress. These models treat families as experts in their own lives.

C. Policy Reform and System Alignment

We can’t solve poverty with policies built in the stone age and patched with duct tape. Our systems are outdated, fragmented, and often contradictory. Reform must be bold, coordinated, and future-oriented.

• Transitional Benefits and Income Smoothing: Instead of abrupt cut-offs, programs should phase out benefits gradually as income rises—encouraging work without risking basic needs. Pilot programs across the U.S. are already proving this model works.
• Systems Alignment: Programs like SNAP, TANF, Medicaid, housing, and workforce development often have separate applications, caseworkers, and rules. These must be aligned, automated, and designed to support—not exhaust—families.
• Milestone-Based Funding: Replace rigid outputs with outcome-based funding that rewards real progress—like income gains, credential completions, or stable housing. Funders must be willing to take risks and reward innovation.
• Public-Private Partnerships: No single sector can solve poverty alone. Governments, philanthropies, nonprofits, and employers must come together to co-design and co-fund solutions that reflect shared goals.

D. Community-Led Leadership and Voice

People closest to the problems are closest to the solutions—but farthest from power and funding. That must change.

• Invest in Grassroots Leaders: Fund individuals and organizations rooted in the communities they serve. These leaders have insights and trust that external institutions cannot replicate.
• Fund Nonprofits as Co-Architects: Too often, nonprofits are treated like vendors instead of partners. Community organizations must be at the design table—not just the implementation line. Long-term, unrestricted funding builds real capacity.
• Build Trust and Equity into Decision-Making: Create advisory boards that include lived experience. Train and compensate peer mentors. Build participatory budgeting models. Equity is not just a value—it must be embedded in every decision.

E. Education for the Future and the Present

Education is the great equalizer—but only when it prepares people for the real world they live in.

• Life-Building Curriculum: Schools must teach students how to navigate life—budgeting, taxes, communication, relationships, entrepreneurship, and civic engagement. Academic skills matter, but they’re not enough on their own.
• Education for the Privileged: Solving poverty requires the awareness and will of those in power. That means educating elected officials, funders, and upper-income Americans on the realities of poverty—the benefits cliff, systemic barriers, and policy gaps. Ignorance is not neutrality; it is complicity.
• Modernizing Economic Education: We need new curricula in political science, economics, and public policy that reflect today’s economy and today’s inequality. Students training to be leaders must understand how outdated systems perpetuate poverty—and how they can dismantle them.
• Civic and Systems Literacy: Every person—whether in poverty or not—should understand how their local, state, and federal systems work. A civically literate population is essential for holding systems accountable and driving transformation.

This five-pillar framework is not hypothetical. Every one of these strategies is being tested in communities right now. What we need is scale, coordination, and commitment. The future we imagine is not only possible—it is already underway.

In the final section, we will turn from framework to call-to-action, offering a roadmap for governments, funders, nonprofits, and citizens who are ready to stop managing poverty—and start ending it for good.

V. Real Stories, Real Solutions

Behind every data point is a person. And behind every transformation is a story that proves what’s possible when systems truly work. In Tennessee, Empower Upper Cumberland and its partners are not just offering services—they are walking alongside families as they build new lives from the inside out. These are not anomalies; they are evidence. When dignity-first, family-centered, whole-system strategies are in place, poverty loses its grip. Here are just a few of the many stories that bring the vision to life:

Stacey’s Story: From Survival to Leadership

Balancing emotions, bills, and her own stress, Stacey knew she had to make a change—for her family’s future. That’s when she found Empower UC. The program helped her take control of her finances, rediscover her career, and step into a leadership role.

Empower UC gave Stacey the tools to rise above—proving that with the right support, transformation is possible.

Kathryn’s Story: Healing Herself, Then Her Community

Kathryn’s transformation doesn’t just benefit her family; it positively impacts the entire community. As a nurse, she will provide essential care to the sick and elderly, giving back to the very community that has supported her journey. Her story is a testament to how opportunity and purpose can come full circle.

Jessica’s Story: From Crisis to Homeownership

After facing bankruptcy and the sudden sale of her rental home, Jessica feared for her family’s future. With her credit impacted and no savings, she turned to UCHRA and was connected with Empower UC. Through hard work and support from Empower and partners like HTC, TTU, and UCDD, Jessica and her husband overcame job and transportation challenges, learned to budget, and built their confidence.

Today, Jessica and her family are first-time homeowners, with stable jobs, reliable transportation, and a brighter future.

"I never want to go back to that place again."

These aren’t outliers—they are blueprints. Real transformation is happening where whole-family empowerment, wraparound supports, and system alignment intersect. This is the power of investing in people and policy.

VI. Call to Action: A Poverty-Free Future Is Possible

The stories are real. The data is clear. The framework exists. Now it’s time to act.

Ending poverty isn’t about charity—it’s about justice. It’s about building systems that reflect the dignity and potential of every person, and creating a future where no one is left behind because of where they were born, how much they earn, or the barriers they’ve inherited.

Here’s what governments, funders, nonprofits, and citizens must do next:

• Shift from charity to justice: Move from short-term fixes to long-term solutions that dismantle systemic barriers.
• Fund what works: Invest in whole-family, place-based, and data-informed models like the Poverty Alleviation System.
• Center lived experience: Make sure policy design, funding decisions, and implementation are led by those closest to the challenges.
• Align systems: Break down silos between programs and agencies. Poverty doesn’t happen in isolation—neither should the response.
• Measure what matters: Focus on long-term outcomes like income growth, homeownership, and generational well-being—not just service counts.

Join the movement. 

The Poverty Solution’s Poverty Alleviation System (PAS) is already driving change in Tennessee—and we’re ready to bring this framework to more communities across the country.

Learn how PAS is transforming communities, and explore how we can bring this system to yours. 

Book a free introductory call at

www.thepovertysolution.com

It’s time to combine data, dignity, and design to build a future where every family has a real shot at prosperity.

The work is urgent. The tools are ready. Let’s get to work.