Pentanomics - Helping the Homeless
I found Nick Timothy’s article, Conservative economic thinking has just taken a great leap forward, very interesting. It makes the case that France is out-performing Britain in per capita income because of investment in infrastructure, housing and energy.
Conservatives tend to believe that government intervention in markets should be minimal at best. Government is thought to be wasteful and likely to invest in things that many people do not want. Passing minimum wage laws, requiring overtime pay, limiting the hours worked per week are all efforts conservatives believe thwarts the free market.
Pentanomics takes the position of minimizing harm. Being wasteful harms those who pay taxes by taking more money than necessary. Conservatives point to waist as a reason to minimize government involvement. Timothy’s article shows us that failure to invest in roads, energy, and housing also fails to minimize harm.
How do we find the balance? How do we minimize the harm caused by government waist while simultaneously minimizing the harm from government inaction?
The answer is simple to articulate although it might be difficult to implement. We must define the problem. We must define the solution. We must find ways to measure progress.
For example, homelessness is a problem. A solution might be for governments to build housing. Another solution might be to train those who are homeless to become employed and able to pay rent.
The problem is obvious. We see people living on the street. Why? We should address the problem by surveying people to determine why they are living on the street. The problem is multifaceted. Some cannot find employment. Some are addicted to drugs. Some are employed but do not make enough to afford to pay rent.
Each of those problems requires a different solution. Take employment as an example. Should government provide employment? Can people be trained for a job in the private sector, while being employed by the government? That could be attempted, and the results could be tracked. We would know how much it cost to train. We would know how much benefit government received while the person was employed. We would know the percentage of people who succeeded in finding a job and no longer lived on the street.
Based on the results, we could discontinue the program or improve it. Everything should be based on results. We should look for constant improvement. That is one of the things I like about Pentanomics.