Homelessness: How Government Policy Makes It

Worse
May 25, 2012 | by Tracy Miller | Topic: The Content of Character, The Path to Freedom Print
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During a recent trip to Chicago, I couldnt help but notice the large number of homeless people in the downtown
area, including one homeless man pushing a child in a stroller. Homelessness was frequently discussed during the
19!s, but seems to recei"e less media attention now. #nd yet, the number of homeless today is appro$imately
twice as large as it was in the 19!s.
Homelessness, li%e any other social problem, is influenced by incenti"es. &nfortunately, go"ernment policy may actually be ma%ing the problem worse, particularly
go"ernment'subsidi(ed housing for the poor.
)any cities ha"e constructed homeless shelters to pro"ide a place for the homeless to stay out of the cold. *y the late 19!s, go"ernments created a networ% of shelters and
soup %itchens to feed and house between +!!,!!! and ,!!,!!! people per day. *etween 19 and 199-, some +./,!!! permanent and transitional housing units intended
for homeless persons were added. *y 199-, roughly -!.,!!! beds were a"ailable as part of the homeless ser"ice system in the &nited 0tates.
1here is little e"idence to suggest that go"ernment'pro"ided shelter has in any way sol"ed or e"en reduced the problem of homelessness2to the contrary, as noted, the total
number of homeless has risen. 3hile ad"ocates for the homeless recogni(e this, many belie"e that pro"iding other forms of go"ernment assistance will help people a"oid
homelessness or escape it. In their "iew, helping people get go"ernment'funded rental assistance, food stamps, and welfare chec%s is integral to pre"enting homelessness.
0ome contend that supplying the homeless and those at ris% of becoming homeless with permanent housing at go"ernment e$pense will get homeless people off the streets
so they can li"e stable li"es.
In truth, lac% of affordable housing is not the main reason that people become homeless, although it may be a contributing factor in some cities. 4eople sometimes become
homeless due to habits or addictions that lead to mismanagement of their finances, unstable family relationships, and the inability to %eep a regular 5ob. #ccording to
)artha *urt of the &rban Institute, three quarters of those who are homeless report ha"ing problems with alcohol, drug abuse, or mental illness.
6ftentimes, pro"iding go"ernment'funded ser"ices to the homeless with no strings attached only ma%es it easier for some of them to continue their bad habits, whether the
problem is substance abuse or an unwillingness to accept responsibility for personal beha"ior. 1his e$plains why homelessness did not decline but increased between the
early 19!s and +!!., e"en though the economy was booming and unemployment and po"erty were declining. Christopher 7enc%s argues that shelters made homelessness
less painful8 this meant that the homeless were 9less willing to sacrifice their pride, their self'respect or their cocaine fi$ to a"oid: homelessness. ;or many people, the
a"ailability of shelters seems to increase the incenti"e to become homeless rather than <if possible= choosing to li"e with a relati"e or friend.
>ot only does the a"ailability of temporary shelters frequently encourage homelessness, but so does federal housing policy. )any single'parent families would li%e to mo"e
into go"ernment'subsidi(ed housing. *ecause it is in short supply, they would ha"e to wait years for a subsidi(ed apartment to open up. *y becoming homeless, a family who
was li"ing in someone elses home can mo"e to the front of the line for go"ernment'subsidi(ed housing.
?i%ewise, another form of go"ernment assistance is problematic@ Ao"ernment programs that try to pro"ide people with s%ills and treatment to o"ercome addictions and
psychoses are e$pensi"e and ha"e low rates of success. 1he success rate of some pri"ate programs to help the homeless is much higher than go"ernment programs2as high
as / percent. 3hile go"ernment programs continue to be funded e"en if they are ineffecti"e, pri"ate charitable organi(ations long'term sur"i"al depends on getting good
results. 0uccessful pri"ate programs usually continue to attract donors and "olunteers, including former homeless people who themsel"es ha"e been helped.
It is only natural to feel sympathy for the plight of the homeless. 1he solution to homelessness, howe"er, is not more handouts from go"ernment. Homelessness can be
pre"ented or o"ercome when a caring community helps those at ris% to de"elop self'discipline and a good wor% ethic. 1his is not easy to do, but some pri"ate organi(ations
are already doing good wor% in this area. 1hose organi(ations might grow and multiply and also be more effecti"e if go"ernment programs, which often interfere with
pri"ate efforts, were scaled bac% or eliminated.
' 0ee more at@
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Tracy Miller
Dr. Tracy C. Miller is an associate professor of
economics at Grove City College and fellow for
economic theory and policy with The Center for Vision
& Values. e holds a Ph.D. from !niversity of Chicago.
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