Current research in psychotherapy is indicted because: (1) it omits the question of social or political values; and (2) it fails to come to grips with the fact that social, political and economic institutions are a large part of the problems of those who need help the most. Poverty is defined in psychological terms as a pattern of hopelessness and helplessness, of feeling limited and expendable. In these terms, psychotherapy is viewed as excluding the old, the black, the poor and the ignorant. Given the absence of hard data supporting the effectiveness of psychotherapy with these individuals, a case is made for the use of non-prfessionals in mental health efforts which could serve this unserved population. In line with this, it is proposed that psychotherapy must couple individual remediation with attempts at institutional change. A residential youth center, formed by the author and a group of non-professionals in New Haven's ghettos, is offered as an example. Twenty youngsters, aged 16-21, previously adjudged to have almost insurmountable problems, were admitted. A control group was used. Results showed increased work attendance, increased incomes, and decreased arrests and time in jail. Also, the group came to feel less alienated and more trustful than the control group. (TL)