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Canada Government

What Happens When Researchers Give Thousands of Dollars to Homeless People? (cnn.com) 270

CNN reports on "The New Leaf Project," an initiative in which the University of British Columbia partnered with a Vancouver-based charity called Foundations for Social Change: Researchers gave 50 recently homeless people a lump sum of 7,500 Canadian dollars (nearly $5,700). They followed the cash recipients' life over 12-18 months and compared their outcomes to that of a control group who didn't receive the payment. The preliminary findings, which will be peer-reviewed next year, show that:

- Those who received cash were able to find stable housing faster, on average. By comparison, those who didn't receive cash lagged about 12 months behind in securing more permanent housing.

- People who received cash were able to access the food they needed to live, faster. Nearly 70% did after one month, and maintained greater food security throughout the year.

- The recipients spent more on food, clothing and rent, while there was a 39% decrease in spending on goods like alcohol, cigarettes or drugs...

The 115 participants in the randomized controlled trial were between the ages of 19 and 64, and they had been homeless for an average of 6 months. Participants were screened for a low risk of mental health challenges and substance abuse. Funding for the initiative came from a grant from the Canadian federal government, and from donors and foundations in the country... Direct cash transfers are not "a silver bullet for homelessness in general," and the program focused on "a higher functioning subset of the homeless population," said Claire Williams, the CEO and co-founder of Foundations for Social Change, but she believes the research shows that providing meaningful support to folks who have recently become homeless decreases the likelihood they will become entrenched in the experience...

According to the research, reducing the number of nights spent in shelters by the 50 study participants who received cash saved approximately 8,100 Canadian dollars per person per year, or about 405,000 Canadian dollars over one year for all 50 participants.

"There's a common misconception that the cost of doing nothing is free or cheap and it absolutely is not," Williams said.

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What Happens When Researchers Give Thousands of Dollars to Homeless People?

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  • by Don Bright ( 6770394 ) on Saturday October 10, 2020 @10:41AM (#60591780)

    .... tech majors tend to have an extremely low opinion of the 'soft sciences' like sociology, history, psychology, or economics, then you go out in the world and tech sites like ycombinator and slashdot are just full of people discussing sociology, history, psychology, and economics.

    i wonder if you go on sociology websites, do they get really interested in discussing circuit minimization or differential equations?

    • by Viol8 ( 599362 ) on Saturday October 10, 2020 @10:56AM (#60591822) Homepage

      If you can comprehend differential equations or quantum physics then comprehending various social issues (when you have the relevant data) isn't going to be much of a stretch so long as you have a reasonable understanding of human nature too. However if your intellext is maxed out when talking about social issues then you've got no chance understanding challenging subjects like post grad maths or physics.

      Yes, thats sounds arrogant but its a fact. Plenty of engineers and scientists in later life move over into the softer social issues and politics in the form of management, almost never do you find the reverse happening.

      • That's not an indication of the excellence of mathematicians & engineers... It's a symptom of some of nowadays problems.

      • by Third Position ( 1725934 ) on Saturday October 10, 2020 @11:15AM (#60591898)

        There's a good reason for that. Cognitive decline frequently causes older engineers and scientists to be sidelined by younger, more mentally alert colleagues. The older engineers and scientists respond by moving into less cognitively challenging fields. Almost never do you see the reverse of that happening, either.

        • by Rick Schumann ( 4662797 ) on Saturday October 10, 2020 @02:03PM (#60592274) Journal
          So is what you're saying is that the only people in our society, and perhaps our civlization, who care about important social issues like homelessness, are people whose brains are starting to rot away, and that people with 'more mentally alert' minds just disregard those people are unimportant, beneath their notice?
          • by rtb61 ( 674572 )

            I would have to agree, I am older and there is to be honest no way in hell I could have conducted that study, my older softer brain would have stopped me. I could not imagine picking 115 people, helping 50 and tracking the misery of the fucking rest. I could not do it, no way in hell, getting paid to watch others in misery, knowing that the team getting paid to do the study could give away all their income and help those poor people.

            The study is as heartlessly awful as fuck. Next time arseholes choose to d

        • by WierdUncle ( 6807634 ) on Saturday October 10, 2020 @02:32PM (#60592336)

          The older engineers and scientists respond by moving into less cognitively challenging fields.

          Speak for yourself, mate. Engineer in his sixties in the UK here. Actually thinking about politics and society is more cognitively challenging than you might think. I have always liked being a bit of a generalist, so my comfort zone tends to be new stuff, not what I have I have already learned, which is mostly grunt work that I would avoid if I could.

          The thing I have found about politics and sociology is that there is an awful lot of bullshit and very little knowledge, which is not what most engineering is like. So to think about politics and society, and not be seduced into foolish ideologies, you need the bullshit detection faculties operating at full strength, which I can assure you is cognitively challenging.

          • If I had mod points right now I'd give you one. There are a number of poor habits of thinking which people who are good at the hard sciences often fall into when it comes to thinking about human science.

            One is having gotten used to having their first or second intuition turn out to be the right answer. For a really hard problem, maybe their third intuition. After being given math and physics problems that I understood right away while my classmates struggled again and again over 12+ years of education

      • Re: (Score:3, Interesting)

        by Anonymous Coward

        By god, that's naive. I have a PhD in quantum gravity and a master's in mathematics. I've solve differential equations for fun since I was 12. If you think that in any way qualifies me to talk about social policy, you're not just arrogant, you're plain wrong.

        Conflating social science with management done by old engineers/scientists is like saying a plumber is doing advanced fluid dynamics.

        Proper social science data is hard, it involves vast datasets - the NSSB for example contains millions of datapoints acr

    • by ShanghaiBill ( 739463 ) on Saturday October 10, 2020 @11:01AM (#60591848)

      .... tech majors tend to have an extremely low opinion of the 'soft sciences'

      If you RTFS, you will see WHY we have such a low opinion.

      Claire Williams, the person saying "we told you so" in the last sentence, with a clear preconception of what the outcome was "supposed to be", was the person leading the research. . There isn't even an appearance of objectivity.

      What else would you expect the result to be? "Hey, it turns out that the cause I've dedicated my life to was wrong and misguided."

      • by Sique ( 173459 ) on Saturday October 10, 2020 @01:13PM (#60592154) Homepage
        But when physicists and mathematicians spend 3 billion dollar to build the Large Hadron Collider, because they want to prove the Higgs Boson does exist, and when they find it, say: "we told you so", they get a Nobel prize, without you complaining.

        Somehow, you are quite biased.

        • The people who predicted the Higgs Boson and the people who found it are different people.

          • by Sique ( 173459 ) on Saturday October 10, 2020 @02:13PM (#60592292) Homepage
            But the people designing and building the LHC were convinced that they would find the Higgs Boson, because they've chosen the parameters optimized for the Higgs Boson detection at the predicted energies.

            This was an experiment, not a court case. In an experiment, the judge is not the experimenter, but Nature itself. And thus, the experimenter first states what the expected the result would be, and then the experimenter states the Null hypothesis to tell the signal from the noise. And then the experiment is designed and performed and the result compared to the expected result and the Null hypothesis, and then you can tell how significant your result is.

            If someone tells me that he criticizes the experiment, because the experimenter was stating an expected result beforehand, I am pretty sure it's personal and not scientific.

        • by bsolar ( 1176767 )

          Actually at the time they had the Standard Model which predicted the Higgs Boson and alternative models without it: the goal was to either conclusively prove the existence the Higgs Boson or conclusively disprove it, thus either validating the Standard Model or invalidating it and steering further research towards the "Higgless" models.

          Basically, as long as they could conclusively confirm or exclude the Higgs Boson's existence, they would have won them the Nobel prize all the same.

        • by sfcat ( 872532 )

          But when physicists and mathematicians spend 3 billion dollar to build the Large Hadron Collider, because they want to prove the Higgs Boson does exist, and when they find it, say: "we told you so", they get a Nobel prize, without you complaining.

          Somehow, you are quite biased.

          So at my last job, I worked with a physicist that had worked at CERN on the LHC. He left to go work in finance before the announcement about the Higgs. He claimed he reviewed their data and wasn't convinced. His quote was, "they had spent so much money that they had to find something". Now, I have no idea if the Higgs is real and I know I don't have the background to make such a determination. But even on your most "certain" example, there are scientists with reasonable credentials that are not convinc

        • by Luthair ( 847766 )
          Pretty much this, people don't follow research paths they don't believe in, and quite frankly we don't reward negative results with publishing unless it contradicts established principles. Further, one of the purposes of peer review is to review the experiment design and methodology.
  • by getuid() ( 1305889 ) on Saturday October 10, 2020 @10:47AM (#60591792)

    ...he wants his tent back, I guess.

    Homeless people are not homeless by choice (if they are, we call them campers, charge them $20 a night, and reward them with dirty toilets and having to sleep next to a Bluetooth ghetto blaster cranked up to full volume).

    They are homeless because they lack the cash to... you know... not be homeless. Give them cash and they'll... you know... not be homeless anymore.

    • Re: (Score:3, Insightful)

      by markdavis ( 642305 )

      >"Homeless people are not homeless by choice"

      Most are probably homeless due to poor life decisions and/or bad luck. Injecting cash helps the latter much more than the former.

      >"Give them cash and they'll... you know... not be homeless anymore."

      Or they will be "not homeless" for a short time and then be homeless again. "Give a man a fish and he will eat for a day. Teach a man how to fish and you feed him for a lifetime." Doing only the former isn't sustainable.

      • by kenh ( 9056 ) on Saturday October 10, 2020 @11:06AM (#60591866) Homepage Journal

        The researchers screened out anyone with mental or substance abuse problems.

        • by Spazmania ( 174582 ) on Saturday October 10, 2020 @03:01PM (#60592416) Homepage

          The key to this research is right at the top: they only gave money to RECENTLY homeless. Broadly speaking, homeless folks fall in to two groups: the briefly homeless and the chronically homeless.

          The briefly homeless hit a very rough patch in their lives. They'll get back no their feet regardless. A little help will get them there sooner.

          Then there's the chronic homeless. These are the folks who have something wrong upstairs where they just can't function in society. Mental illness. Anger management problems. Drug addictions. Clean them up, take them off the street and they still can't bring themselves to do the things it takes to hold a job.

      • by Anonymous Coward on Saturday October 10, 2020 @11:51AM (#60591994)

        >"Homeless people are not homeless by choice"

        Most are probably homeless due to poor life decisions and/or bad luck. Injecting cash helps the latter much more than the former.

        >"Give them cash and they'll... you know... not be homeless anymore."

        Or they will be "not homeless" for a short time and then be homeless again. "Give a man a fish and he will eat for a day. Teach a man how to fish and you feed him for a lifetime." Doing only the former isn't sustainable.

        I can give you one example. A person I know in Australia fled the house of her abusive husband, taking her two children, a plastic bag with some clothes, and three dollars. In a country that was not her own and speaking a language of which she had rudimentary knowledge. She was able to contact a women's refuge who sent a cab and gave her a place to stay. With their help she was able to connect with Centrelink which gave her money to live on each month and eventually a place to stay. She was able to go to school for ESL, then get trained and certified in aged care. She recently passed her citizenship test and has become a tax-paying contributing member of society. Her daughter is finishing high school and will also become a citizen.
        Without the support system she would have had no choice but to return to her country with her daughter and abandon her young son to live with the abusive drug-addict father. Instead they have a stable home, the son has a good life instead of a terrible one, and Australia will have three good citizens. Money well spent, and as a bonus that family has a good life. Seems like a win-win.

      • by kanweg ( 771128 )

        Yes, that is it. Bad life choices, for example by choosing a job in a line of work killed by Covid.

        In any case, it is cheaper for society if people get out of the rut they are in. In my country heroin addicts were given methadone. Drug related rates dropped, less people in jail (which costs tax payers money) and the lives of the drug addicts improved and many could shed their addiction or handle it. And heroin addiction became more rare because they didn’t need to attract new users to support their ad

    • Just because something is obvious doesn't mean that it's true. Indeed, the major stated argument against direct payments is that the homeless won't spend it on getting out of homelessness so any welfare program has to be attached to a large nanny apparatus. This is actual evidence that the stated argument is at least not universal, and raises suspicion that the stated argument was not the actual argument.

      Note that the major feature of this trial is not giving money per se but giving unconstrained money dire

    • "They are homeless because they lack the cash to... you know... not be homeless."

      Exactly. I expect the researchers will come next month and tell us that giving food to hungry people makes them unhungry.

    • Homeless people are not homeless by choice.

      The conditions in Cali put lie to that statement It is true of some but not all.

  • Comment removed (Score:4, Insightful)

    by account_deleted ( 4530225 ) on Saturday October 10, 2020 @10:49AM (#60591796)
    Comment removed based on user account deletion
    • Re: (Score:2, Flamebait)

      by Narrowband ( 2602733 )
      Yeah, and probably carefully controlled the circumstances and separated the groups too. Otherwise, they would have found that 10 minutes after the one group got the money, the control group who didn’t get the money beat them up and took it.
    • by Viol8 ( 599362 )

      Yup. Here in the UK a huge proportion of homeless are alcoholics. Now that might be a cause of their situation or it might be an effect of it, but either way they spend money on booze and just giving them cash is a recipe for disaster without some other kind of support and guidance.

      • by vlad30 ( 44644 )
        An alternative is don't give cash In Australia a trial of a Cashless Welfare Card which could only be spent at the supermarket for food and clothing was given to a welfare recipients https://www.theguardian.com/au... [theguardian.com]

        Despite the typical bleeding heart liberal complaints its labels and stigmatizes people the biggest complainers turned out to be Bars and clubs who watched the sales of liquor and gambling fall

        • Even then, nothing prevents household items from becoming a form of currency. In fact, some drug dealers prefer payment in Tide bottles, because they are not black money but can be sold to make black money https://www.businessinsider.co... [businessinsider.com] Just don't give crackheads money. Give them a daily EBT card and some housing and that's it.
    • I think the important thing is that they *were* able to successfully screen out these people. Maybe opening the door to an addictions program before getting free money. Also, there will always be people that just can't be helped.
    • "Participants were screened for a low risk of mental health challenges and substance abuse."

      Well that's why it worked. Many homeless people have those problems, which is why they're homeless. There are many, many stories of giving homeless money which turns into drugs. Obviously this study stacked the deck.

      You're rather conveniently ignoring an important line in the summary: "The recipients spent more on food, clothing and rent, while there was a 39% decrease in spending on goods like alcohol, cigarettes or drugs". So yes, you could say that the screening "stacked the deck" if you were looking to let your preconceptions shit all over the attempts they're making to help disadvantaged people. OR you could acknowledge that for some folks, homelessness is the cause of their substance abuse, and that helping them

  • Researchers discovere that tackling a problem seriously to solve it once and for all costs less in the long run than letting the problem linger on.

    Wow... That's worth a Nobel prize.

    • but that is not what happened, their lives went back to baseline after 12 months, so any improvement was temporary and nothing was solved
  • Undoubtedly, money is important. With money I'm a lot more likely to be able to get a room and a meal than without. With a job, though, I can still have all of the above, and in perpetuity. I suppose one could draw the conclusion from this study that throwing money at the symptoms of homelessness is cheaper than not doing so - at least from a provider's point of view, but I hope that nobody thinks this is a viable solution of any kind. Well, someone will probably make a UBI case out of it. Look forward to i
    • I suppose one could draw the conclusion from this study that throwing money at the symptoms of homelessness is cheaper than not doing so

      Not necessarily. If homeless shelters start handing out $5000 to everyone who shows up and claims to be homeless, it is possible that homelessness will increase.

      • If homeless shelters start handing out $5000 to everyone who shows up and claims to be homeless, it is possible that homelessness will increase.

        Well, we started giving out $600/week for people without a job. It was very successful in making/keeping people unemployed, so you're probably on to something there.

  • by fluffernutter ( 1411889 ) on Saturday October 10, 2020 @11:01AM (#60591844)
    This is very good evidence in favor of UBI. If giving people money makes them more stable, that's the best that can be expected and a desired result. This means less motivation for crime in the long run. Even if 10% of these people end up getting jobs down the road it's a big win.
    • Re: UBI (Score:4, Insightful)

      by kenh ( 9056 ) on Saturday October 10, 2020 @11:17AM (#60591910) Homepage Journal

      The participants in this study were carefully selected to eliminate anyone with a history of drug or mental problems - the problem with UBI is that first letter "U", which stands for "universal". Also, this study was a one-time payment, UBI is, as commonly understood, intended to be on-going, perpetual distributions of cash.

      So you think a study that hands a one-time payment to hand-picked recipients proves that we should continually hand money to everyone forever?

  • The vast majority of vagrants... er, "homeless," are drug or alcohol addicts or mentally ill or both. If you select for the small minority who are just "normal" people who had bad luck, like losing jobs or a health situation, you will get positive results.

    • by kenh ( 9056 )

      I wonder how many homeless people they had to interview to find 100+ without drug or mental problems...

  • garbage stats (Score:5, Insightful)

    by avandesande ( 143899 ) on Saturday October 10, 2020 @11:03AM (#60591860) Journal
    For instance, 'the recipients spent more on food, clothing and rent, while there was a 39% decrease in spending on goods like alcohol, cigarettes or drugs...'

    If you look at the bottom chart they actually spend more on these items, but it was less of the total because they had more money.
  • They spent $400K CDN to determine that if you give thousands of dollars to homeless people without substance or mental issues, it improves their lives? Was there even a question about how this would turn out?

    I bet you the results would have been the same if you halved the payment and helped the control group as well, you know the 60 some drug-free, mentally stable homeless people the researchers just watched and provided zero help to.

    • by godrik ( 1287354 )

      Well, what you keep hearing in some circles is that "it is not a problem of money, it is a problem of character". I suppose that study shows that part of the problem is clearly a money problem.

      • by Entrope ( 68843 )

        Aa others pointed out, this study screened out people who had the most obvious "character" problems. What fraction of candidates was that? If it was 10%, that's good evidence that homelessness isn't primarily a problem of character. If it was 75%, that's good evidence that this kind of cash transfer will only help a small fraction of the homeless.

        • I've seen figures bandied about that indicate over half of the homeless population have moderate to severe mental issues, substance abuse issues, or both. Broken down (this varies by study, of course), 33% mental issues, 38% alcohol issues, 26% other chemicals, with various degrees of overlapping, of course.

      • it is a problem of character

        That would be why they screened the participants for no drugs, no mental health issues - "character".

    • According to the research, reducing the number of nights spent in shelters by the 50 study participants who received cash saved approximately 8,100 Canadian dollars per person per year, or about 405,000 Canadian dollars over one year for all 50 participants.

      It also saved the shelter 8100$ per person per year, meaning an overall cost reduction of 600$ per person per year. It may not sound like much, but it means the same money can help 14 mentally stable homeless persons per year instead of 13, a 7.69% incr

      • So when a mentally-stable, non-addicted, non-alcoholic shows up at a homeless shelter, we should hand them $5,700 US and send them on their way, confident we changed their life and applaud ourselves for saving money?

        What happens when they come back for more? Is charity now one-and-done, or do we just keep handing out cash and "saving money"?

        • by mabu ( 178417 )

          What happens when they come back for more?

          The same thing that happens when any other program ends. It ends. If you're on unemployment you have x amount of time before it runs out to find a job. If you're on food stamps, you have x amount of money to use in a particular time. People who are given welfare of this nature are told what the limitations are. If they squander those resources, it's their problem. Most people don't. So stop promoting this myth that giving people a helping hand turns them into

  • Thatâ(TM)s certainly an interesting interpretation of the results.

    Glancing through the source linked by the CNN article, this appears to be their published data:
    https://static1.squarespace.co... [squarespace.com]

    The charts seem to show that yes, people who were given a relatively large lump sum of cash were suddenly able to spend more cash on everything.

    For the first ~6 months they appear to increased their spending on everything including housing, clothes, food.

    After 6-9 months their month-to-month metrics then appear

    • Did they ever help the members of the control group? I'm guessing not, they deserve to remain homeless, for the good of the study.

      • That seems to be the case.

        The month to month stats for the control group donâ(TM)t appear to improve over the period.

        The only thing that happens is that the people who received money slowly fall back to the same level as the control group after several months and no one is better off at the end of the day.

        (Except for the researchers, they probably enjoyed their monthly paycheck.)

    • by mabu ( 178417 )

      They "spent less on drugs and alcohol" because they were screened to not be into drugs or alcohol before they were allowed to participate in the study.

  • A lot of people are homeless because of alcool problems. Hence, the alcool is the problem. Let's invent synthehol and get rid of homelessness, once and for all!

  • by rsilvergun ( 571051 ) on Saturday October 10, 2020 @11:10AM (#60591876)
    back in the late 90s it was shown that it's cheaper to just give homeless shelter, food & some money unless you're willing to brutalize them and/or use forced work camps. That's because keeping a large police force to harass them and keep them from making trouble & locking them up for minor drug crimes is *expensive*. As the saying goes, it's cheaper to drop food than bombs.

    What's amazing is 30 years later we're still "researching" it.
    • back in the late 90s it was shown that it's cheaper to just give homeless shelter, food & some money

      Citation needed.

      Many cities have made many different attempts to deal with homelessness. The cities that have tried the hardest (SF, LA, NYC, Seattle) have had worse results than cities that have done much less.

      Cities with the most homelessness [usnews.com]

  • Participants were screened for a low risk of mental health challenges and substance abuse.

    In other words, this was not random at all. The people in the surveys hand picked people who would be more responsible. Meanwhile the vast majority of actual homeless people probably wouldn't qualify for this, but when the study's results are released, this little tidbit won't be in any of the media coverage.

  • I think I'll let some experts in the field dissect the value of this study, before spending too much time on it myself. Of course, lack of peer review never stopped the media from jumping all over a story and putting a narrative on it.
  • But a stable address and three square meals does help in finding a job (and in getting off the alcohol)

  • Participants were screened for a low risk of mental health challenges and substance abuse

    That's the important bit now isn't it, finding the rare homeless that would actually benefit from a simple lump sum. The results would not be anywhere near as pretty if same money would be given to just average homeless. Some social housing to use on the other hand would benefit every single homeless, even the hopeless alcoholics and drug addicts. And would cost less too if specifically built for the purpose.

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