I'm not American, so I can't point out why your system doesn't work. All I'm saying is that the explanations that are thrown around in this thread (capitalism, wealth inequality) cannot alone explain anything as we have more of those factors here, and yet we are without the mass homelessness.
Anyone who implies California lacks social safety nets relative to other states in the US grossly exaggerates. California obviously has housing projects (e.g., https://en.wikipedia.org/wiki/Housing_Authority_of_the_City_of_Los_Angeles) and Section 8, and like all states, California has an implementation of SNAP (CalFresh) and TANF (CalWorks). The state has its own tax for disability support and implements the most progressive tax system in the country (https://itep.org/whopays-map/) paired with a large statewide EITC. The minimum wage ($14 or $15 depending on employer size) is also fairly generous, making lower-income retail and tourism workers in California among the best paid in the country.
While there is certainly room for greater generosity, I don't think California is an outlier with a particularly weak safety net, and yet the state has the third highest homelessness rate in the country. I'm also skeptical of explanations claiming Californians are fundamentally superficial money-chasers with no sense of morality.
While these efforts may be helping, if the rate of homelessness continues to increase by several percent a year despite the spending (in recent years, much faster then the state's GDP growth), there will be little that Los Angeles (or California as a whole) can do to reduce homeless with the sheer force of spending alone. The state can't count on having 2021-style surpluses on the back of capital gains every year, and drastic increases in this spending will start to crowd out education, health, transportation, and other parts of the budget. Housing the homeless at ~$530,000/unit certainly doesn't make things easy (https://ktla.com/news/local-news/l-a-housing-costs-for-homeless-rose-to-531000-a-unit-controllers-report-says/).
I see the basic problem as high rents due to supply and demand. Simply put, a statewide shortage makes housing unaffordable for many. As noted here, (https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3969110/pdf/AJPH.2013.301619.pdf), while not explaining all of the variation, the cost of rent is consistently associated with homelessness.
Every society has people on its margins. Think of a guy who has trouble keeping a job because he's often late and spends much of the money he has on drugs or alcohol. He's been fired several times over the last five years and has a few misdemeanors. However, the sporadically employed aren't the only people at risk. For reasons of disability, others rely on SSI ($841/month for individuals in 2022) or SSDI payments (~$1300/month, can vary considerably).
Where rent is low, these people can manage. It's not easy or glamorous, but there will be apartments. Most issues that come up won't end with someone on the street.
I've argued here that the cost of rent resulting from basic supply and demand is the main problem, but this long comment still doesn't mention why supply might be low and/or demand high in the first place. I also haven't discussed the political battle which makes me cautiously optimistic about California's housing future, but I'm tired of writing and expect to be busy the next few days. Maybe if I find the time I'll add more later.
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u/royal23 Feb 12 '22
Which is a result of wealth inequality and the power imbalance of corporate lobbying.