Underclass theories attempt to identify, locate, and analyze the poorest people in society. Social scientists and journalists have traditionally used the term “underclass” to describe concentrations of impoverished racialized populations living in urban areas. This type of poverty is cyclical, and takes place in the absence of social mobility. Scholarly views on the underclass fall into two categories. The structural school of thought frames the underclass as victims of economic changes caused by globalization, while the behavioral school blames poverty on the poor themselves, focusing on antisocial behaviors and flawed cultural ideas and practices. In the mid‐ to late twentieth century behavioral variations of underclass theories have been very influential in US and UK policy circles, facilitating what is commonly referred to as the retrenchment of the welfare state.