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jordonwii | 5 years ago
> This is one reason why people are interested in things like UBI
Can you elaborate on how UBI would help? Homelessness in high-opportunity low-housing-supply regions is not a problem of individuals not having enough cash, and neither is the inability of non-profit workers to live in these places. If we handed everyone cash, we would simply be writing a check to the landlords in high-opportunity regions like the Bay Area, because everyone would still be bidding up prices on the same housing supply.
The core problem on both sides of this is that these places, the Bay area in particular, make it extremely difficult and expensive to expand the housing supply to mitigate this problem, and the article alludes to this:
> We have the empty lot to do it in and we hired an architect but it came out to cost so much we postponed
At the end of the day, high rents push people on the margin onto the streets and they make it expensive to house the people who need to help them. Solutions that purport to dodge this problem with cash handouts (UBI, renter's credits, etc.) will only help landlords unless we also ease supply restrictions.
That said, for people who are already living on the streets, the solutions are even more complicated, as there are often confounding issues like mental illness, substance abuse, etc. that require shelter space and intervention by non-profit workers (and then we're back to the housing supply problem).
rayiner|5 years ago
It’s certainly true that some fraction of non-profit work is hands-on social work, and yes, those people do need to live near the people they serve. But I think it’s fair to say that non-profits should think really hard about who really needs to live in NYC/SF/etc. versus the degree to which they’re just subsidizing the lifestyle choices of college-educated white workers who could do the same work from somewhere else.
> Can you elaborate on how UBI would help? Homelessness in high-opportunity low-housing-supply regions is not a problem of individuals not having enough cash, and neither is the inability of non-profit workers to live in these places.
Let’s not overstate the “opportunities” available in places like SF and NYC. Lower income people live there because there are a lot of service jobs for unskilled workers. But it’s not like those people are going to be able to work their way up from the mail room at Facebook or JP Morgan. What you have is a situation where these workers have to be in SF or NYC because that’s where the service jobs are, and where landlord can capture a big fraction of the rent that the government might subsidize.
UBI addresses that problem by decoupling wages from location. Someone receiving UBI can move from SF to Bakersfield. That increases their standard of living while limiting the cost to the government relative to trying to support that person in SF of NYC. 1 in 12 people in SF broke their leases during pandemic. Imagine what would happen if the government told everyone tomorrow they they’d get $1,000 per month guaranteed, which they could draw upon either in SF or in Des Moines. It would have the double effect of reducing the demand for housing in places like SF and NYC, and enabling that demand to be diverted to places where building new supply might be much easier.
jordonwii|5 years ago
> What you have is a situation where these workers have to be in SF or NYC because that’s where the service jobs are
Well, yes, I intentionally was including everyone, not just people working six-figure office jobs: everyone else also benefits significantly from living in a place with a large and growing job market. Growth in high-paying white-collar jobs generally leads to even faster growth in the wages and number of less-skilled jobs in the same place.
Historically, there is also a wage premium for unskilled workers in larger metros - today much of that surplus flows to landlords instead, thanks again to under-building of housing in those areas. Even in SF, wages for the lowest-income workers have grown slightly faster than CoL over the last ~decade (thanks in part to the effect of rent-control for long-time tenants).
> Someone receiving UBI can move from SF to Bakersfield.
This is true iff UBI is generous enough that many of the people who work those service jobs would choose to live on it without being employed - at $1000/month, I suspect that would not be very many. If people want to be employed, living near the much larger and growing job market of the Bay Area would remain much more attractive than living in Bakersfield. The fundamental issue would be unchanged AFAICT.