Poverty is a root cause of crime, and without solving the poverty issue it may not be possible to solve the violent crime issues plaguing Indian reservations. Where there are high rates of poverty, so there are high rates of crime. The official poverty rate for individual Indians in the United States on reservations is 29.4 percent, compared to the U.S. national average of 15.3 percent. The reservation poverty rate for Indian families on reservations is 36 percent, compared to the national average of 9.2 percent. Urban Indians have a poverty rate of 22 percent, which is better than reservation poverty rates. Some of the worst poverty rates are on reservations in the states of Washington, California, Wisconsin, Michigan, North Dakota, South Dakota, Arizona and New Mexico, where poverty rates often are higher than 60 percent.

Poverty is associated with low income, high unemployment, poor health, substandard housing, lack of market opportunities, and low educational achievement. Cycles of poverty are extremely difficult to break and tend to last over generations.

Poverty is closely related to social distress. Impoverished persons are more likely to be engaged in underground economy, use drugs and alcohol, which, in turn are highly associatied with violent crimes, domestic violence, and high crime rates.