When you visit San Francisco, there are a few key qualities to the city life. Some may say it is the Golden Gate, some may say Candlestick Park, or Market Street. However to many who visit the city, one issue that stands out is the homelessness problem. The city of San Francisco has around 8,011 homeless people according to a count conducted this year. That number has increase 17% the last time a count was conducted in 2017. California is the most populous state, however, it also obtains the highest number of homeless people in the country. So, what is San Francisco doing about this issue?
In November of 2018, almost 60% of San Francisco voters approved Proposition C, which will increase taxes on local businesses so that the city can spend more money to combat homelessness. The new taxes are so destructive, that these voters have effectively decided to commit economic suicide. This proposition will incur an average of 0.5 percent on all gross receipts for businesses with an annual revenue exceeding $50 million. The new tax, which will be the largest in San Fran's history, is expected to generate around $300 million annually. This money will be used for homeless shelters and mental health services.
The San Francisco Board of Supervisors just approved a plan to build a homeless shelter. However there are many price issues that reflect negatively for the economy. The problem is that the location of the shelter is on Embarcadero, the city's waterfront. This is one of the most expensive locations of the city, where homes average nearly $1,200 per square foot. Building in this location makes no economic sense. So why did they choose it? It is because many homeless shelters are already located near Embarcadero. This would attract most homeless people to unify in one area, rather than spread out around the city. Even though having a huge homeless shelter may attract even MORE homeless people into the city knowing they have "support".
This is a significant flaw in San Francisco's approach to the homeless issue. The city's policy seems to be that homeless will unconditionally remain. Although that may be true, the city's policies are not safety net policies. This approach will not most effectively solve the issue. They could create a homeless shelter maybe not in San Francisco, but in lower and decent house costs in major Central Valley. This would mean less housing costs for every homeless person house in San Fran.
“San Francisco Wants To Devastate Its Economy To Help the Homeless.” The Heartland Institute, www.heartland.org/news-opinion/news/san-francisco-wants-to-devastate-its-economy-to-help-the-homeless?source=policybot.
“The Backwards Economics Of San Francisco's Homeless Policies.” Hoover Institution, www.hoover.org/research/backwards-economics-san-franciscos-homeless-policies.
The number of homeless people in San Fransisco is certainly an issue. In addition to the extreme tax increases, the housing prices are astronomical along with rent for small businesses. As we discussed in class a few weeks ago, the city is essentially being taken over by tech and startup companies. This is effectively kicking out lower and middle class citizens along with small business owners. Many people without other options are turning to the streets or the ridiculously small apartments shown in the San Francisco 2.0 documentary. This problem doesn't show signs of becoming resolved especially since high tech cities are becoming more and more desirable for the younger working class and for the economy.
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