"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 13 hours Global Debt Hits 225% Of GDP
  • 14 hours The World’s First Trillionaire Will Be A Space Miner
  • 15 hours How Student Debt Could Cause The Next Real Estate Crisis
  • 16 hours This $550 Billion Industry Is Betting On Bitcoin
  • 17 hours One Commodity Set To Soar On Russian Sanctions
  • 19 hours China’s New Car-Market Rules
  • 21 hours Oligarch Risk: The New Red Flag For Investors
  • 2 days Five Things To Consider Before Investing In An IPO
  • 2 days Investors Bullish As Earnings Season Kicks Off
  • 2 days Nearly One-Third Of U.S. Lottery Winners Declare Bankruptcy
  • 2 days Is Facebook Still A Buy?
  • 2 days Will Blockchain Stocks Ever Bounce Back?
  • 2 days Geopolitical Tensions Fail To Boost Gold Prices
  • 2 days China's Economy Soars Despite Trade War Fears
  • 2 days The Biggest Threat To The Economy
  • 3 days What Does A Billionaire's Bucket List Look Like?
  • 3 days Is The Global Economy Growing Or Slowing?
  • 3 days A Sanctions War Could Cripple U.S. Corporations
  • 3 days British Pound Soars To Highest Level Since Brexit
  • 3 days Markets Bounce Back As Geopolitical Fears Subside
Oligarch Risk: The New Red Flag For Investors

Oligarch Risk: The New Red Flag For Investors

Investors are scrambling to diversify…

3 Stocks to Watch This Earnings Season

3 Stocks to Watch This Earnings Season

Stocks began Friday with a…

LA Pledges $100 Million to Fight Homelessness: Why Stop There? Why Not $1 billion? Why Not $20 Billion?

Public Emergency

In yet another example that proves economic stupidity has no bounds, Los Angeles Puts $100 Million Into Helping Homeless.

Flooded with homeless encampments from its freeway underpasses to the chic sidewalks of Venice Beach, municipal officials here declared a public emergency on Tuesday, making Los Angeles the first city in the nation to take such a drastic step in response to its mounting problem with street dwellers.

The spending proposal will need to be approved by the City Council and allocated by its Homelessness and Poverty Committee. The $100 million figure was chosen in part for its symbolism, said Herb J. Wesson Jr., the City Council president, to show county, state and federal officials that the city was willing to make a significant contribution to an urgent problem.

"Encampments used to be contained to Skid Row, where city officials would try to control or ignore them," said Gary Blasi, a law professor at the University of California, Los Angeles, who has studied homelessness in the region for years. "Plans have been made, and never made it off the paper they're written on. It's not clear what will be delivered. And do the math here -- it doesn't amount to much at all."

In New York, Mr. Blasi said that hundreds of existing housing vouchers went unused because homeless people could not find landlords who would accept them.


Ding Ding Ding

Ding, ding, ding, we have a math winner!

I am not quite certain if Blasi is arguing for more or less spending, but he is the first person other than me, that I am aware of, to bring math into the equation.


LA vs. EU

Question of the day: Other than a sense of scale, is the homelessness crisis in Los Angeles that much different than the refugee crisis in Europe?


Unlimited Demand for Free Services

In LA, as in the EU, there is a virtually unlimited demand for free food, free shelter, and free services.

Offer $100 million and the need will grow overnight to $1 billion. Offer $1 billion and the need will grow overnight to $20 billion.

Offering free food, free services, and free shelter cannot possibly cure a problem caused by free services, especially in a desirable temperate climate.

Blasi says: "Do the math here -- it [$100 Million] doesn't amount to much at all."

On Tuesday, in regards to Europe (but it may just as well have been LA), I wrote EU Ministers Ram Through Quota Plan; Mish Does "The Math".

By all means, let's have a math discussion.

 

Back to homepage

Leave a comment

Leave a comment