The majority of the poor are those who experience chronic – and even multigenerational – poverty (Iceland, 2003). In the United States, many of the chronically poor live in urban environments. These environments, characterized by a high concentration of poor, a high concentration of people of color, and a concentration of disadvantage, have been characterized as areas of moral as well as economic failure. In this article, I will argue that conditions in these regions serve to keep individuals in poverty. and perpetuate multigenerational poverty through diminished human capital and reduced social capital. Human capital is defined as the skills and abilities that enable an individual to behave in such a way as to be successful in their environment. Social capital is the set of relationships between individuals that facilitate action (Coleman, 1988). The combination of the two allows some individuals and communities to take advantage of opportunities and organize for positive change. The absence of either isolates individuals from opportunities or makes them unable to take advantage of the opportunities to which they are exposed. Racial Segregation and Poverty It is impossible to discuss urban poverty without talking about race. Blacks and Latinos are disproportionately poor. While 10.6% of white Americans are poor, 24.4% of black Americans and 21.5% of Latino Americans are poor, according to the U.S. Census. Wilson (1987) argues that the effects of living in economically isolated areas outweigh the effects of living in racially isolated areas for African Americans. Isolation from job opportunities and role models, he argues, has left poor black communities effectively excluded from participating in the economy. to disorder in urban neighborhoods. American Journal of Sociology, 105(3), 603-651.Seccombe, K. (2000). Families in poverty in the 1990s: Trends, causes, consequences, and lessons learned. Journal of Marriage and Family, 62(4), 1094-1113. Tanner, M. (1996). The end of welfare: the fight against poverty in civil society. Washington, DC: Cato Institute.Williams, R. (2001). New barriers (and potential new opportunities) for minority small businesses in the new economy. Community Business Technical Assistance Collaborative.Wilson, W. J. (1987). The truly disadvantaged: the inner city, the underclass and public policies. Chicago: University of Chicago Press. Woolcock, M., & Narayan, D. (2000). Social capital: implications for development theory, research and policy. The World Bank Research Observer, 15(2), 225-249.