To the extent urban renewal projects actually work (they often don't), I think they mostly move the problem around. The urban core itself may be revitalized, and the poor then move somewhere cheaper as gentrification sets in. I definitely don't think it is an effective method for fighting poverty or inequality, but it is popular.
As for welfare, I don't think misspending is the problem per se. One problem is that healthcare is a lot more expensive in the US due to our convoluted healthcare system. I think the main reason life is much worse for America's poor than Europe's poor is that America's poor are harder to live around.
I would not generalize over all of Europe, I generally would not want to live around the Paris poor while the Vienna poor are way more livable. To put it very, very bluntly, Turkish-Albanian-Serbian poor > North African poor. It is an incredibly insensitive way to put it, but this is simply what my experience boils down to. The former countries got historically more "westernized"/secularized/liberal/whatnot. I regularly train with the former types of guys as I go to a fairly cheap boxing gym. They are okay. A bit rough around the edges, may b...
An article by Nyan Sandwich on More Right.
This is the section that I am particularly interested in discussing, building better models of this has clear consequences for futurism as well as ambitious effective altruism: