Spend money to end homelessness? Doing so will actually make more money than is spent. Isn’t that the kind of fever-dream that propels gambling addicts until they become bankrupt? Nevertheless, the idea has caught on in the world of homelessness activism. The idea is simple, easily expressed and, on a small scale, appears to work.
On that small scale, just who is successfully trying and proving the success of a ‘spend money to make money’ program? Not gambling fantasists who believe that the next spin of the roulette wheel or the start of a horse race or purchase of a lottery ticket will guarantee a financial bonanza. Some successful small scale trials have been proven successful by hard-nosed businessmen.
Here’s an example from the people who operate hospital and health care systems. A homeless person arrives at a hospital emergency and requires an operation followed by a period of recuperation. Recovery might be managed economically at home, but . . . what home?
So homeless persons, needless to say, do not recuperate economically in a bed at home. And they cannot simply be shown the door to the street.
Instead, they remain in the hospital, clogging up extremely expensive hospital beds, while limiting a hospital’s primary care capability. To counter this problem, some hospitals invest in rehabilitation facilities where patients can occupy a bed more economically. That frees up precious, expensive, hospital beds. Successfully done, this ultimately represents spending money to make money1.
There are wide variety of financial costs that a community must face in order to support their neighbours who are homeless. Accountants can demonstrate that spending money by providing homes, as well as home support, can actually save more money than it costs.
In theory at least, there is general agreement that applying a ‘spend to save’ homelessness model may indeed be profitable. But what community, large or small, is brave enough to shell out housing money to support people who are homeless on an unproven idea?
Here’s one – a large very community with America’s greatest homeless population. Read more at CaliforniaHealthline: California’s Medicaid Experiment Spends Money to Save Money — And Help the Homeless
