Homelessness in Cities

As I'm sure that most people on WSO live or work in a metropolitan area, you are probably frequently exposed to the homeless. I recently moved downtown and the homeless problem (at least in downtown Houston) seems pretty bad due to covid. There are entire blocks where people are just camping out in front of shut down business. 

Recently I've been thinking, what could be done to solve this issue? Can it ever be solved, or just be minimized? 

This is all hypothetical, but one idea I've thought of is what if the city bought out a 10 stories building, housed the homeless, provided 3 meals and day while offering rehabilitation. In addition, maybe they could work for the city whether it be sweeping streets, maintaining parks, etc... And also, if all of these services we provided, would certain homeless people even wanna conform and live a normal life? 

I'd assume that the overwhelming majority of people that are homeless either have a drug addiction or are mentally ill, so maybe looking at treating this crisis as a mental illness/ drug addiction problem could be another way of approaching this situation. Kinda just rambling on here but this is a crucial situation that all cities should be addressing, and looking for a long-term solution. 

Any thoughts?

 

I am not in a city but I can see how the homeless situation could be getting very bad.  It is easy for white collar workers to work from home but you can't say the same thing about people in other industries that require being in-person.  Unemployment payments do not go on forever and I think the extra benefit due to COVID expired.  This is only one industry, but in NYC broadway will not be opening up until ay least mid 2021.  What are these people doing for compensation and/or work?

It is not only the drug addicts and or people with mental illness who are homeless.

 

That's very true, but it's the problems faced by drug addicts and/or the mentally ill that are difficult to sort out. People in Broadway or other in-person industries have skills that might be even somewhat loosely transferrable to other jobs and industries in the interim. Even if these skills are non-existent, people are still capable of working in a grocery store, a fast-food restaurant, or for the city by "sweeping streets, maintaining parks, etc" like the OP mentioned. Drug addicts, the mentally ill, the disabled, these are all marginalized groups that really can't do these jobs or most other jobs. That's why the solution of "picking yourself up by your bootstraps" doesn't quite work for them. If we want to beat homelessness, I really think we need to figure out how to help marginalized groups because others will manage.

 

I have lived in both LA and NYC before and other larger cities. This entire situation is indeed bad and, looking at research/papers, is about to get much worse.

Some councils are trying "tiny homes" to provide housing, others do have larger facilities for people who are temporarily displaced. However, there are specific rules everyone has to live by in these accommodations and sometimes people don't want to adhere to them.

Let's also not forget people who live in their cars, who are couchsurfing, or find alternative solutions.

This is a very large topic that needs consistent work from the entire society.

 
Most Helpful

There are two main aspects here: Housing costs and the social safety net.

  • Housing costs are primarily a local issue. Let's face it, less supply means prices are higher.  Allowing less building in cities means that costs are going to be higher across the board. Items like rent control only help the winners that have them, the losers that don't are out in the cold (literally in some cases) because they have to deal with higher prices from it
  • Poor transit frequency and high costs also help reinforce this. Parking at my local train station can be $10+ per day. Add train fare and gas/insurance/maintenance on top of that and a lower wage worker can be pushing 20% of their salary just getting to work. This makes moving further out less of an option
  • The social safety net is highly fragmented.  Getting enrolled in benefit programs in a different state can take months in normal times. If you need medical coverage (a frequent cause of bankruptcy) this can be a deal breaker

I'm actually very fiscally conservative (not that you'd know it if you looked at my investment portfolio alone) and have never experienced homelessness myself, but know people that have.  Honestly, the system is both bloated and broken. Give everyone universal basic income and universal health insurance. (yes, with limits and 'death panels'-If you want more buy a private upgrade) Kill the rest of the social safety net except maybe school lunches, and eliminate the basic exemption (and maybe some deductions) to make it revenue neutral.  People 'squatting' on severely underpriced NYC apartments are likely to move to lower cost areas freeing up more of the existing housing stock for people with a need to be there.  It will also help enhance lower income mobility to pursue jobs elsewhere, which has decreased significantly in the past half century.

The only difference between Asset Management and Investment Research is assets. I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
 

Whatever1984

There are two main aspects here: Housing costs and the social safety net.

  • Housing costs are primarily a local issue. Let's face it, less supply means prices are higher.  Allowing less building in cities means that costs are going to be higher across the board. Items like rent control only help the winners that have them, the losers that don't who are out in the cold (literally in some cases) because they have to deal with higher prices from it
  • Poor transit frequency and high costs also help reinforce this. Parking at my local train station can be $10+ per day. Add train fare and gas/insurance/maintenance on top of that and a lower wage worker can be pushing 20% of their salary just getting to work. This makes moving further out less of an option
  • The social safety net is highly fragmented.  Getting enrolled in benefit programs in a different state can take months in normal times. If you need medical coverage (a frequent cause of bankruptcy) this can be a deal breaker

I'm actually very fiscally conservative (not that you'd know it if you looked at my investment portfolio alone) and have never experienced homelessness myself, but know people that have.  Honestly, the system is both bloated and broken. Give everyone universal basic income and universal health insurance. (yes, with limits and 'death panels'-If you want more buy a private upgrade) Kill the rest of the social safety net except maybe school lunches, and eliminate the basic exemption (and maybe some deductions) to make it revenue neutral.  People 'squatting' on severely underpriced NYC apartments are likely to move to lower cost areas freeing up more of the existing housing stock for people with a need to be there.  It will also help enhance lower income mobility to pursue jobs elsewhere, which has decreased significantly in the past half century.

Didn't see your comment before posting below, but I agree it's an issue of mobility. That's why I like the UBI idea and getting rid of many safety net programs, because it allows people to prioritize what's important for them, with generally no restrictions or limitations to the state.

 

You'd like to assume every homeless person got there by abusing drugs and not working hard enough, but we know economic hardships are harder on lower rungs. Right now, small business closures and places like restaurants that employ lower income people has spiked, recently, and that tends to happen during economic hardship. This is going to have a huge impact long-term on some individuals. You can say that social movement, or people's ability to successfully go from poor to middle class to upper and the lack thereof, is not an indicator of social mobility, which is does it happen in general in society. But you can find studies done showing that places with the most upward mobility tend to quickly price those poorer earners out, and so there is a diminishing potential for upward mobility. Land is scarce and the economics of making housing naturally affordable becomes very costly after awhile.

People need to move, but in practice it's not easy to pick up and move, especially when someone may already be struggling to make ends meet. And that's not a healthy solution when rental owners rely on multi-month/long-term lease agreements for stable revenue. In many states, the high density cities with high upward mobility, generally are occupied by more well off high earning individuals at its core, and the outskirts are inhabited by lower income people who commute in. That's a model that usually works out. But, at some point, the city can grow fast enough to push even higher earnings' people to the outskirts. I know that's happening in places like DC and even NYC doesn't have many lower income neighborhoods inside Manhattan.

And, traditionally, the cities that are now pushing lower income people out have been a beacon for migration to the city because of the idea of upward mobility, which is now in reverse. It's a lot harder to know where those opportunities lie because realistically, if LA or NYC are places with traditionally high upward mobility and that is now no longer the case in terms of affordability, it's probably some of those lower income people's last hope to be there in the first place and who now have no hopes of better options.

 

Basically would need certain people to not reproduce which is impossible to enforce (and I do not advocate for that) so it's unlikely to be solvable. Maybe I'm wrong. I don't have a good solution. 

Money can purchase freedom, if you have the guts to buy it
 

If someone wants to have a family, they should have the right to have one. It is a basic human right.

We are considering putting humans into space and onto other planets, but we don't have an avenue to create even a basic lifestyle for the ones on earth. All of us in finance will (probably) never understand what it means to be without a home or enough food to feed our kids. But I know plenty of others who have nothing on their mind but how to pay rent and how to buy bare essentials.

So in light of automation, Covid19 and all other challengers, we might want to find a solution to provide basic housing and supplies first (UBI is one possibility).

 

Many homeless have mental or emotional problems that preclude them from a normal life or really seeking out changes for themselves. In our area the previously mentioned tiny homes are being offered at small numbers by some religious and NGO organizations. I think providing small no frills housing to homeless is a pretty smart idea.

With that being said, generally the best answer for addressing homelessness in able bodied and able minded people is to drive such growth in jobs that people who would have previously been overlooked for positions would be accepted. Unfortunately, covid’s biggest detriment to our society probably won’t be in lives lost but in the economic harm that occurred due to necessary measures to avoid mass death. I would love to see programs like the depression era public works programs where we can put these people to work on our infrastructure providing them with housing, food and income while hopefully getting our infrastructure caught up to where it should be. The real benefit would be if you didn’t have to pay prevailing wages like many governments require you could really employ a ton more people and get so much more done.

 

Yes mental health contributes to drugs and alcohol which then contributes to burning bridges and becoming homeless.

But I don't understand widespread homelessness in high cost of living cities like San Fran; if you can't afford the cost of living, move out! Move to a more affordable part of the country and rebuild your wealth.  Think about it, if you lost your job and were draining your savings b/c the cost of living is high, would you stay and let yourself become homeless or would you move, decrease your costs and grind to get on your feet again?

Plus practically we are enabling homelessness by accommodating them with zero police intervention (made worse by liberals defunding police), free health care, free food and shelter.  Enabling someone with a problem by giving them more means to continue their problem doesn't break their vicious cycle.  

More needs to be done in helping the homeless find work and relocate to other zip codes where there is demand for their labor.  

 

We're back at my social safety net point.  In the 1.5 years I spent between college and grad school I worked a seasonal job.  We were "laid off" *wink wink* for the winter.  I was lucky still living with my parents (and god I got ridiculously fit) but I had to go 30 minutes across my county twice a month to a 'job center.' Yeah, I'm applying to  Ph.D. track Masters programs, I'll take that janitor job for the next two months to get off your rolls. /s

If I was actually in need and tried to move, I would have had to skip those and lost my unemployment payments.

The only difference between Asset Management and Investment Research is assets. I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
 

Generalizing to a bigger problem a HUGE part of America just wants to live a ‘simple’ life and work a job they don’t have to think much of, go home and bam without too much food or housing insecurity.

I’d be ok if we did away with everything and gave everyone UBI for this reason because it applies to druggies like above. Localities and municipalities can then have programs that go beyond to provide these basic works (janitorial, etc. that people can do and have job security) while getting enough to live.

Decent value, money sink sure but mostly gets a decent chunk of the problem dealt with. At this point if someone is fucked then it’s their fault. People have a lot of insecurity over their downside case, and providing a guarantee for some of that with money we will spend no matter what (on BS useless programs and bloviating bureaucracies and bureaucrats) is somewhat OK to preserve incentives still.

But yeah I think we could do better for those who have no recourse or have issues that needs help from society. But what about lazy people who put themselves in those situations? You have to provide a margin for that, but at least this way I think crime drops for those who are desperate and need it who sometimes turn to crime instead of working hard. This is a middle ground of sorts. I’m for it, but mostly for localized programs. Someone in alaska should not be responsible for some bum in California and Vice versa it’s just too removed from another, but Californians can tru this out.

 

In my opinion, to start a discussion on homeless you need to define what/who you think the majority of homeless are. Is it people with mental disabilities or just can't function in society? People down on their luck? People who are just lazy and dont/wont work?

I mean, we're all smart on this form. If one of us went homeless, no money, no assets, but you have your ability and mindset, how fast do you think it would take you to get out of homeless. What would be your process? Get a job, move to a less populated area? Basically, my point/take is, I don't think people live on the streets because they got priced out of a home or are too lazy to work; most have most mental issues outside of that, where a majority, if you gave them a home they would still end up on the streets. 

So do you police the homeless? Give them money? A lot of people mention how the homeless aren't policed because they dont have anything to take/it would crowd jails. Adam Carolla talks about this on his podcast, where he tells a story about Jimmy Kimmel trying to open a sandwich shop. The state inspector wouldn't let Jimmy open the sandwich shop bc he didn't have the right fan for the drive thru window, but across the street a homeless guy was selling fruit everyday and no one policed him. 

 

The Jimmy Kimmel story is just further proof how ridiculously oxymoronic California and its liberals are.  They want economic prosperity but make up the dumbest rules that seem written up by children.  

 

That's what Carolla talks about a lot; basically it two sets of rules, one for people that have money and can pay a fine, and one for people that don't have money thus don't pay a fine. 

Think about if some rich person decided they were going to build a structure on a sidewalk and weren't going to pay taxes or own the land. They would end up in court; but if someone without money does it they let them be. 

 

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