eli5 In Lower-class Neighborhoods why can’t we stream more money through and create jobs and more opportunities to the people?


I’m in need of this shower thought that I have.

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We can.

But nobody does. Or, if they do, it’s a token, one time effort that doesn’t address the source of poverty and inequality, like predatory landlords or substandard education/healthcare.

How do you recommend we stream the money through? Where does this money come from?

Trying to get the outcome you want is much more complicated than simply throwing money at the problem. As always, the devil is in the details.

Well that’s the idea behind a lot of programs, but after decades of negative feedback loops it’s not really that easy.

The population doesn’t have valuable skills, those will need to be taught.

The area doesn’t have good infrastructure, that will need to be built.

The area doesn’t have an existing business pool to supply new businesses with parts and resources, those will need to be brought in from somewhere else.

We can, but that requires someone to do something about it.

Governments often address only token issues rather than addressing underlying causes of poverty.

People don’t want to pay more in taxes for social programs to fix the underlying problems.

Low income housing for example is frequently stopped by the NIMBY (Not In My Backyard) crowd because low income housing is seen as bringing crime into an area.

Education for example is paid for with school taxes from the region. So a poor area doesn’t want to raise taxes to pay for better education. The fix is to even out the education budget across a State.

Raising the minimum wage is another obvious one, as many poor families have to work multiple jobs to make ends meet. This means less free time, and less time to care for their own kids. But there’s a lot of resistance against this.

Free medical care, child care, and mental health treatments is another one that would help a lot but again that costs money.

Free education is another one. An adult has a hard time going back to school to get a better education because higher education is expensive, and you still have to put food on the table

Another good one is to reform the prison system.

Because those are just words.

What do you mean by “stream more money through”? How much money? Where is it coming from? Where is it going? Who is going to manage it? What is it going to be spent on? For how long are you going to do it?

What do you mean by “create jobs”? What jobs are you going to create? How are you going to create them? How are you going to hire for them?

Sure you can wave your hand and go “just stream more money and create jobs” but the reason no one does “that” is because that is not a well formed strategy and coming up with a well formed strategy is kind of hard and is something we’re already doing in various degrees in countries all over the world.