The poverty may be partly illusory. It sounds like a lot of their economy is not money-mediated (inside the family or work done for social recognition). This means that their wealth is underreported by money-based statistics like median income. A common risk when comparing differently structured societies.
I think that's probably correct. According to rumors I hear, the leadership of the community structures everything so that the rank and file will be poor and therefore entitled to the maximum amount of public assistance.
For example, suppose you teach 30 hours a week at the local religious school. In a free market, you might get paid $25k a year for this work and spend $10,000 a year to rent your nearby apartment. But if it's the same organization which runs the religious school and is also your landlord, you can have an arrangement with a nod and a wink...
I was browsing my RSS feed, as one does, and came across a New York Times article, "A Village With the Numbers, Not the Image, of the Poorest Place", about the Satmar Hasidic Jews of Kiryas Joel (NY).
Their interest lies in their extraordinarily high birthrate & population growth, and their poverty - which are connected. From the article:
From Wikipedia:
Robin Hanson has argued that uploaded/emulated minds will establish a new Malthusian/Darwinian equilibrium in "IF UPLOADS COME FIRST: The crack of a future dawn" - an equilibrium in comparison to which our own economy will look like a delusive dreamtime of impossibly unfit and libertine behavior. The demographic transition will not last forever. But despite our own distaste for countless lives living at near-subsistence rather than our own extreme per-capita wealth (see the Repugnant Conclusion), those many lives will be happy ones (even amidst disaster).
So. Are the inhabitants of Kiryas Joel unhappy?