This article examines the relationship between poverty and the welfare state and attempts to answer the question as to why poverty has persisted under all welfare states. Several major reasons for the persistence of poverty are advanced, and the author argues that the main factor underlying the failure to abolish poverty is the conflict between economic policy and social policy. The challenge to welfare states from the New Right is examined—particularly the contention that welfare states themselves create poverty and dependence—in the light of evidence of the impact of the Thatcher government's policies in Britain. Finally, the author proposes an alternative approach to the abolition of poverty, one that is based on the integration of economic and social policy.
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