Part 4/13:
In cities across the United States, the homelessness crisis exemplifies these perverse incentives at play. Consider the staggering amounts spent on programs designed to alleviate homelessness. Reports indicate hundreds of thousands squandered on inadequate housing initiatives, with government funds disproportionately benefiting contractors and consultants rather than those truly in need. In Los Angeles, the budget for homelessness services skyrocketed from $63 million in 2015 to $88 million in 2022, a jump of over 1300%, yet the number of homeless individuals continued to rise by 56%.