Past experience provides a basis for the belief that poverty can be eliminated in the U.S. in this generation. The poverty rate has been reduced at the rate of one percentage point a year; the poverty income gap is now down to 2 percent of GNP. Preventing and countering the "events" which select people for poverty can help to maintain or accelerate the rate at which we have been making progress against poverty. For example, by returning to the 4 percent "full employment" rate of unemployment, we would instantaneously reduce the poverty rate by one percentage point. For another example, we could make a great stride toward early closing of the poverty income gap by modifying the income tax to pay out family allowances. :Another broad approach to the elimination of poverty is to break down the social barriers which restrict opportunities for the poor. Examples of this are legislating against practices of discrimination and making plans to bring the poor into the mainstream of community life. The third approach is to make progressively greater investment in improving the abilities and motivations of the poor. Substantial increase in outlays for education and training is a promising example of this approach. Reduction of poverty hinges on the attainment of other goals such as economic growth, full employment, income security, and equal opportunity. But it also turns upon the reduction of poverty itself since poverty to an important degree causes itself. Hence, any favorable break in the circle makes the next step easier. More nearly full employment makes barriers less meaningful; lower barriers shrink differences in motivation. Similarly, higher incomes for the poor work to reduce both acquired and at-birth limitations of ability. But any one of the approaches will involve costs, and it would be valuable to know their comparative, cost-benefit ratios. [ABSTRACT FROM AUTHOR]