What is the “Poverty Paradox”?

The so called "poverty paradox" had its most forceful philosophical presentation in the nineteenth century in Henry George's Progress and Poverty (1879).  The problem is thus identified by George in the Introduction to this economic bestseller:

This fact - the great fact that poverty and all its concomitants show themselves in communities just as they develop into the conditions toward which material progress tends - proves that the social difficulties existing wherever a certain stage of progress has been reached, do not arise from local circumstances, but are, in some way or another, engendered by progress itself.

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