A Canadian study gave $7,500 to homeless people. Here's how they spent it.

[Javaman]

https://www.vox.com/future-perfect/21528569/homeless-poverty-cash-transfer-canada-new-leaf-project

snip

“At first, I thought it was a little far-fetched — too good to be true,” Ray said. “I went with one of the program representatives to a bank and we opened up a bank account for me. Even after the money was there, it took me a week for it to sink in.”

Over the next year, the study followed up with the recipients periodically, asking how they were spending the money and what was happening in their lives. Because they were participating in a randomized controlled trial, their outcomes were compared to those of a control group: 65 homeless people who didn’t receive any cash. Both cash recipients and people in the control group got access to workshops and coaching focused on developing life skills and plans.

Separately, the research team conducted a survey, asking 1,100 people to predict how recipients of an unconditional $7,500 transfer would spend the cash. They predicted that recipients would spend 81 percent more on “temptation goods” like alcohol, drugs, or tobacco if they were homeless than if they were not.

The results proved that prediction wrong. The recipients of the cash transfers did not increase spending on drugs, tobacco, and alcohol, but did increase spending on food, clothes, and rent, according to self-reports. What’s more, they moved into stable housing faster and saved enough money to maintain financial security over the year of follow-up.

more at link...

[justaprogressive]

1. Of course!

Just like 200 other studies!!!

The unhoused in this country are the result of poor policy!

[Johnny2X2X]

2. Makes perfect sense to me

Used to volunteer at the local "soup kitchen", got to know some of the people we served. Wish everyone could have a similar experience. Everyone on the street has a story, every single one. And most of their stories have some component to them that includes, "I lost my job and got behind on rent." or 'My car broke down and I lost my job and then couldn't afford rent any longer." or "I was sick and couldn't work and then got behind on bills." Most people just need an adequate sum to get back on their feet and then they won't be homeless anymore. Enough to get into an apartment, buy some clothes, feed themselves, and arrange for transportation to job interviews. $7500 is enough for most people to get back on their feet, but it's also might as well be $75 Million to a homeless person if they were trying to raise that amount themselves.

Sure, there are people on the streets with problems. Mental problems, substance abuse problems, criminal histories, etc. But boy would most people be surprised at how familiar even their stories can sound. Unless you come from generational wealth, you're closer to the street than you think. One bad break can spiral into homelessness faster than most people realize. And once you've lost it all, getting it back is so daunting.

"Just get a job!", yeah, who's hiring homeless people? If you're homeless you probably lost your clothes, don't have a plce to get cleaned up for a job interview, no transportation to an interview, etc etc. In a flash, it can all be gone and seem so far out of reach there is no hope.

We could apply this smartly nationwide, save money, and reduce homelessness by more than half within a year IMO.

[jimfields33]

3. I can't under why California doesn't do something like this. The fourth largest economy worldwide.

This is one state that should have zero homeless. The ones with substance abuse issues should be put in drug rehab. The one in mental situations should be in therapy. I don’t care that Reagan closed down the facilities. That was 50 years ago. How hard would it be to reopen them immediately after he was out of office as governor?