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Homelessness: How Government Policy Makes It Worse

May. 30, 2012 1:56pm

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 & […]

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. He holds a Ph.D. from University of Chicago.

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tracymiller@gcc.edu

Author's Website

During a recent trip to Chicago, I couldn’t 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 1980s, but seems to receive less media attention now. And yet, the number of homeless today is approximately twice as large as it was in the 1980s.

Homelessness, like any other social problem, is influenced by incentives. Unfortunately, government policy may actually be making the problem worse, particularly government-subsidized housing for the poor.

Many cities have constructed homeless shelters to provide a place for the homeless to stay out of the cold. By the late 1980s, governments created a network of shelters and soup kitchens to feed and house between 200,000 and 300,000 people per day. Between 1988 and 1996, some 275,000 permanent and transitional housing units intended for homeless persons were added. By 1996, roughly 607,000 beds were available as part of the homeless service system in the United States.

There is little evidence to suggest that government-provided shelter has in any way solved or even reduced the problem of homelessness—to the contrary, as noted, the total number of homeless has risen. While advocates for the homeless recognize this, many believe that providing other forms of government assistance will help people avoid homelessness or escape it. In their view, helping people get government-funded rental assistance, food stamps, and welfare checks is integral to preventing homelessness. Some contend that supplying the homeless and those at risk of becoming homeless with permanent housing at government expense will get homeless people off the streets so they can live stable lives.

In truth, lack of affordable housing is not the main reason that people become homeless, although it may be a contributing factor in some cities. People sometimes become homeless due to habits or addictions that lead to mismanagement of their finances, unstable family relationships, and the inability to keep a regular job. According to Martha Burt of the Urban Institute, three quarters of those who are homeless report having problems with alcohol, drug abuse, or mental illness.

Oftentimes, providing government-funded services to the homeless with no strings attached only makes 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 behavior. This explains why homelessness did not decline but increased between the early 1980s and 2007, even though the economy was booming and unemployment and poverty were declining. Christopher Jencks argues that shelters made homelessness less painful; this meant that the homeless were “less willing to sacrifice their pride, their self-respect or their cocaine fix to avoid” homelessness. For many people, the availability of shelters seems to increase the incentive to become homeless rather than (if possible) choosing to live with a relative or friend.

Not only does the availability of temporary shelters frequently encourage homelessness, but so does federal housing policy. Many single-parent families would like to move into government-subsidized housing. Because it is in short supply, they would have to wait years for a subsidized apartment to open up. By becoming homeless, a family who was living in someone else’s home can move to the front of the line for government-subsidized housing.

Likewise, another form of government assistance is problematic: Government programs that try to provide people with skills and treatment to overcome addictions and psychoses are expensive and have low rates of success. The success rate of some private programs to help the homeless is much higher than government programs—as high as 85 percent. While government programs continue to be funded even if they are ineffective, private charitable organizations’ long-term survival depends on getting good results. Successful private programs usually continue to attract donors and volunteers, including former homeless people who themselves have been helped.

It is only natural to feel sympathy for the plight of the homeless. The solution to homelessness, however, is not more handouts from government. Homelessness can be prevented or overcome when a caring community helps those at risk to develop self-discipline and a good work ethic. This is not easy to do, but some private organizations are already doing good work in this area. Those organizations might grow and multiply and also be more effective if government programs, which often interfere with private efforts, were scaled back or eliminated.

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Comments (9)

David Foxfire
Posted on June 12, 2012 at 5:19am
The last paragraph of this article is the key here. If you want the government to be less involved in dealing with the Homeless, then by God you _better_ have a private charity picking up from that the Public Sector left behind. The pro-Government side will be chomping at the bit to put that big old spotlight on the smallest of dropped balls, and as someone who could have been homeless himself (due to mental illness) I wouldn’t blame them one bit.

It reminds me of what’s going on in England right now: where austerity cuts forced youth centers to be closed down and millions of their youths are spending what would be the best time in their lives with zero job prospects or safe places to go outside of their sofas. How could they not riot in the streets?

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Okiemomx2
Posted on June 3, 2012 at 12:35pm
A large percent of these homeless are veterans. Our veterans deserve our help, however if it is in the form of handouts instead of effective treatment programs we are hurting them more than helping them.

We also need to help the mentally ill with the same attitude. Adress the problem with effective treatment. It took us over a year to find a good Phycistist for my daughter and we had priivate Insurance. I’ve spoken with families on government assistant the average time for them to get to get their mentally ill love one in for ther first appointment is around two years. We all pay when this happens with increased volience in our neighborhoods and fewer productive citizens.

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- TheirMom
  Posted on June 5, 2012 at 7:22pm
  Arizona has probably the worst health care system in the county, but mental health care through any government plan is terrible. After waiting 8 to 12 months for an appointment the “patient” gets a 30 minute evaluation, is medicated, then is seen once a month for 15 minutes. There is no long term care, no drug rehab, and life skills are taught at a 4th grade level. The worst part is Arizona charges the homeless and indigent for doctor visits, prescriptions and transportation to and from. In short, they don’t actually help The private charities offer housing, job training real drug rehab, and nearly everything to help a person succeed. And they do it for a whole lot less money.
  
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bluegrandma52
Posted on June 2, 2012 at 8:31pm
There is a homeless encampment of around 70 people about 500 ft away from our street that’s been there for almost 2 years. It’s on land owned by the state DoT, in a heavily wooded easement between two expressways. The state, county and township authorities are allowing them to stay, over the concerns of the taxpaying residents in the area. While the “tent city” is invisible to passersby, their influence is not. I have spoken with some of the “residents”; many of them are mentally ill, most of them could live in shelters in town or with relatives, but prefer camping out in our neighborhood (mainly because the camp is quite comfy with big tents and wood- and propane-burning stoves, and there’s a bus stop nearby). A liberal church helps them out with rides, food, clothing and furniture. Their leader said they would be moving last spring, but there is no indication of that happening soon. This camp has spawned two more smaller ones in the area. Police calls are up 200% in the last year as homeowners deal with transients on their property, harassment of walkers and joggers, minor break-ins, and a propane tank explosion in the camp last month. My daughter found a man urinating behind our garage last year. I live in a liberal area, and it’s frustrating to talk to authorities, who should be doing something, babbling about “diversity” and “compassion” for these squatters. Feeding a problem only results in more and bigger problems.

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vvinyard
Posted on June 2, 2012 at 4:52pm
What an idiot. The governmet is the reason homelessness has increased so drastically. Remember the bail out for the home mortgages What a spin……..people whom have lost their homes are in tent cities across the U.S.. Just because you don’t hear about them doesn’t mean they aren’t there. Families with children in those tents! My blood boils when I hear a lefty talk, they sound like complete idiots. Has the government exchanged the tents for FEMA camps??? There are families with children incarcerated in them. When will this madness stop???? All of them should be ashamed, I am so glad I do not have to bear their cross.

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Grace1798
Posted on June 2, 2012 at 6:52am
SOOOOOO Liberals…….HOW HAS OBAMA HELPED YOU? Liberalism is a cult ……..you are just following this cult instead of looking how he has damaged your live and the lives of all you know and he’s right NOW going for ANOTHER STIMULUS…….he’s out to bankrupt this nation. Don’t you get it yet? How much more must you lost before you get it and when you finally get it ……IT WILL BE TOO LATE TO TURN IT AROUND. Wake up! HE HAS NOT HELPED YOU!

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BelieveMe
Posted on May 31, 2012 at 4:07pm
Dr. Tracy Miller: The absence of real data about homelessness, rents, or government aid in your article make it a complete waste of time to read. The most valuable thing you mentioned is that when government got involved with housing the homeless, the problem WAS NOT SOLVED. There are a host of plausible reasons why homelessness has grown in America. This list includes in no particular order: EX-FELONS unable to obtain employment, EX-MORTGAGE-HOLDERS, 92 million Americans who will have filed for 1st time unemployment benefits UNDER OBAMA, FREEDOM LOVERS, SOCIAL SECURITY RECIPIENTS(AND SSDI people) who cannot find housing&survive with $900/month, low-income earners whose paycheck has been trivialized by INFLATION(shhh – don’t tell anyone), NON-PROFIT companies designed to HELP THE HOMELESS – but in reality REQUIRE the HOMELESS to gain support and REVENUE, government RULES when handing out money to NON-PROFITs, including such idiotic rules as kicking the homeless out at 6am even in the rain, POLICE-instigated “roustings” which give homeless a record of petty offenses, and most of all APARTMENTs – I grew up in a city where EACH STUDENT(poor-rich) went HOME to a HOUSE in which their parents were engaged in PURSUIT of HAPPINESS. Get the government out of our lives.

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- colnzgprnts
  Posted on June 2, 2012 at 2:32pm
  Get the overnment out of our lives! Now there is a novel idea which will not be given consideration as our nation goes down the road to socialism.
  
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David Sharette
Posted on May 30, 2012 at 3:18pm
Also, lets not forget to mention price ceilings that governments put in place to try to protect the renters from their rent increasing. These caps are well-intended, but if we consider the basic supply-demand model, we know that price ceilings only lessen the supply of housing. Of course, with cheaper prices, the demand increases. Unfortunately, the demand exceeds the supply and there is a dead-weight loss. Now, not only do less people have housing, but chances are the housing that is available is filled with the more affluent folk and the poor are left out on the street. Less housing = more homeless.

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