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One problem with homelessness is that it's in many ways a classic externality. It's often cheaper for localities to provide no services (which cost money and attract more homeless individuals) and instead to encourage homeless people to migrate elsewhere. Hence the controversial practice wherein some cities buy homeless people one way bus tickets to other cities, or plane tickets to other states in the extraordinary case of Hawaii. So even if that $300m got 7500 individuals off the street, another 7500 would move in to replace them right away. Which is why you don't see any visible effects of the spending.

Even when cities do undertake to provide services rather than shifting costs, their capacity to provide those services is only a tiny fraction of the national demand. And it's functionally a national or at least regional market because the homeless tend to be a very mobile population due to lack of fixed housing or employment. So you get cities like Portland, OR, where they provide extensive services, but the downtown areas where the services are located have been inundated with homeless people, which has been extremely detrimental to businesses in the area, has strained public safety resources, and damaged the quality of life of many local residents (eg a couple years ago a homeless man made a tent home on the sidewalk outside my apartment and then would scream at the top of his lungs for hours every night for months, making it impossible to sleep, presumably because of some mental illness).

In some ways, it makes zero sense for San Francisco to spend any money at all on the homeless, because it's one the most expensive places in the nation that we could be housing and providing assistance to the homeless population. But homeless people have rights, including the freedom to travel where they want. So they will continue to be attracted to cities that treat them well, at a disproportionate expense to locals (who ironically tend to be the ones most sympathetic to their need), while NIMBYists contribute nothing and experience no detriment. While also generating homeless people at the same rate as the more welcoming areas.

All of which is to say that we need some national policy here, otherwise a few cities will continue to shoulder the burden while most will skate along as free riders. A functioning mental health system would be incredibly helpful, for example, because then mental health services wouldn't be limited to a few locations.



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