1) People who make mostly good decisions, but have had bad luck. They've been hit by medical expenses, for example, or been born in circumstances with no real opportunity.
2) People who make bad decisions chronically. Many of these people have substance abuse problems and mental health issues, or come from backgrounds where they never had the opportunity to learn any self-control like dysfunctional families.
It seems like the best thing you can do for #1 is to give them cash, but cash would be wasted on #2. Also, that poverty in the developing world looks mostly like #1, but in the developed world looks mostly like #2.
Am I way off here? Do other people have these thoughts? Is this callous? I'm really asking for feedback.
(I'm posting anonymously because I'm afraid of having this unpopular opinion attached to my real identity.)