In economics and sociology, the cycle of poverty, or poverty cycle is a social phenomena whereby poverty-stricken individuals exhibit a tendency to remain poor throughout their lifespan and in many cases across generations. The cycle of poverty has been described as a catch-22 and a feedback loop, as it occurs because the financial resources necessary to get out of poverty, namely productive capital, can only be obtained if the individual has financial resources in the first place. This often means the poverty-stricken find it extremely difficult to get out of poverty because they do not possess enough resources to invest in their own economic development. The cycle of poverty has roots in ancient times and feudalism. Serfs and peasants on a landlord's land often had to pay most of their crops in tribute to their lord as rent or taxes, and were only allowed to keep enough for bare subsistence. Unable to maintain any savings to invest in human or physical capital to improve their own productivity and therefore income, peasant families would remain poor for generations. Applied to countries, the poverty cycle is often called the development trap.

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