Society's preference for dependency reduction over poverty reduction in dealing with the lower classes stands in the way of greater anti-poverty impact of social policy. Discusses four approaches to poverty policy, their effectiveness, and the poverty assumptions they are based on. Examines why a workfare strategy could be effective. (PS)

Suggests that social welfare policy focus on household assets. Asset distribution is less unequal than income distribution. Assets cushion income shocks, reduce household transaction costs, and provide a stake in the future. Reviews the current policy debate. Discusses policy directions in direct financial transfers, housing, and support for…