The other problem with poverty is that it's becoming increasingly more difficult to live a lifestyle without certain things available. Like Gid has blogged on before, laws are going on the books that basically make it illegal to be poor. Americans don't have outhouses anymore because they can afford indoor plumbing, but there are laws in some places that say you can't HAVE an outhouse... you MUST have indoor plumbing, regardless of your ability to pay for it. In other, less regulated countries, people can be poorer, and live worse than us, because it's legal to have a shack built out of paper if that's what they can afford. Here, we have building codes. You can't build a paper shack.
Are we better for it? Maybe. After all, you don't have to worry about your rented apartment not having indoor plumbing. But if you don't want it, you need to get it anyway, and can't try to save money that way. Plus we pay the taxes that pay the regulators their salaries.