[I agree that "it's owned by someone" can be a problem more than "there's not enough land". Unfortunately, that's politics so I have no quick solution.]

As for what happens to the poor in future generations, it depends on bringing out the best in those with the power to choose. I don't think the alternative is helpful to entertain at this point. The only question is whether we can mature as a race to share without force, or whether balance will be made using force (government coercion, etc...). It's a question about how much faith we have in the human race to grow up quickly.