Why did many African Americans in the south live in conditions that were little better than slavery?

This is not and never was limited to only black individuals. The Appalachian mountains is filled with people living in terrible conditions. These conditions are far better then what is found by the middle class in third world countries.

There are two issues here. The first is that they are used to being this poor and therefore do not want to change. The second is the system itself doesn't allow movement easily. Once you are on welfare, it is easier to stay in your area and remain a virtual slave. People on these programs tend to be the people that have lower self esteem issues and therefore tend to not take chances, like moving. It takes tons of drive to stand on your own feet when you have never done so before. It is impossible if you do not have the self esteem to believe you will succeed.