The essential truth about poverty is that we will never fully understand what causes it. There are a million factors that contribute to poverty, and they interact in a zillion ways.
Some of the factors are economic: the shortage of low-skill, entry-level jobs. Some of the factors are historical: the legacy of racism. Some of the factors are familial: the breakdown in early attachments between infants and caregivers and the cognitive problems that often result from that. Some of them are social: the shortage of healthy role models and mentors.
The list of factors that contribute to poverty could go on and on, and the interactions between them are infinite. Therefore, there is no single magic lever to pull to significantly reduce poverty.
The only thing to do is change the whole ecosystem.
If poverty is a complex system of negative feedback loops, then you have to create an equally complex and diverse set of positive feedback loops. You have to flood the zone with as many good programs as you can find and fund and hope that somehow they will interact and reinforce each other community by community, neighborhood by neighborhood.
The key to this flood-the-zone approach is that you have to allow for maximum possible diversity. Let’s say there is a 14-year-old girl who, for perfectly understandable reasons, wants to experience the love and sense of purpose that go with motherhood, rather than stay in school in the hopes of someday earning a middle-class wage.
You have no idea what factors have caused her to make this decision, and you have no way of knowing what will dissuade her. But you want her, from morning until night, to be enveloped by a thick ecosystem of positive influences. You want lefty social justice groups, righty evangelical groups, Muslim groups, sports clubs, government social workers, Boys and Girls Clubs and a hundred other diverse institutions. If you surround her with a different culture and a web of relationships, maybe she will absorb new habits of thought, find a sense of belonging and change her path.