Underclass and Public Housing

As a way to renew urban areas, North American and European cities have started to construct new building from old buildings to create public housing for low-income residents. In exchange, the residents must pay 30% of their income. Though this was meant to be a good thing, public housing recently became demolished due to criticisms for destroying social cohesion of older neighborhoods and for reducing the supply of low-cost housing.

Because there has been no sure way of helping the inner-city residents, the residents are considered permanent underclass and are trapped in an unending cycle of economic and social problems. The people lack in job skills and are often homeless. Many residents resort to crime.