The Profit from Poverty

The federal government allocates approximately $900 billion annually to programs aimed at assisting low-income Americans, which inadvertently creates significant profit opportunities for various businesses that depend on this funding. These entities, grouped under what is termed 'Poverty Inc.,' include healthcare providers, tax preparers, and real estate managers, all of whom center their operations around public assistance programs. For instance, some Medicaid practices and tax preparation companies exploit low-income clients by charging exorbitant fees to access benefits, thereby siphoning off funds meant for those in need. Ultimately, while the government spends substantial money to support disadvantaged populations, much of it fuels a for-profit sector that may not actually improve conditions for the poor.