We often see politicians make outlandish claims regarding resolving homelessness, yet the follow-through, post-election, usually doesn’t happen and is ignored. I intend to investigate these claims through meticulous analysis and a thorough literature review to understand the complexity of homelessness and possibly find some solutions. This discussion will unfold over a series of posts, each delving into different facets of the issue. I will transparently share the resources and programs utilized during this investigation, showcasing the depth of the process. It’s imperative to maintain an open-minded approach throughout, grounding our conclusions in evidence and factual data whenever available.
Our investigation starts with a provocative tweet by Monderie Jones, which suggests a bold idea: “For the cost of one aircraft carrier, we could end homelessness in the United States. Poverty is a policy choice.” This post gained traction on Reddit (They did the math, n.d.), where a majority proposed a thought experiment: If we did sell one aircraft carrier, distributed the funds among the homeless, applied taxes, and pinpointed the most cost-effective state for their relocation, and how long can these people live independently? This approach would allow us to calculate the duration each homeless individual might need to address their situation, assessing whether the allocated resources would be sufficient for their journey to stability. While provocative, this statement prompts several questions for clarity:
- Will we consider the costs to research, develop, build, and maintain an aircraft carrier?
- Is this suggesting a one-time allocation of funds to solve homelessness or advocating for a dedicated budget to address homelessness permanently?
- Which type and class of aircraft carrier is being referred to?
- Is the proposition aimed at permanently ending homelessness or providing temporary relief?
- What would these funds focus on housing, food, job training, mental health services, or all these areas?
Even though this statement is unclear and lacks information on how to solve homelessness, I believe this idea can be an excellent start to understanding why it is hard to solve homelessness. To start, I want to build upon Reddit’s thought experiment, focusing on what it costs to build an aircraft carrier, disregarding the cost of research development and maintaining an aircraft carrier. The funds allocated to each individual will be compared to each state’s cost of living index. Helping us determine the most affordable situation for an individual homeless person. Lastly, we will compare the states to their laws and regulations, determining which state should be eliminated due to laws hindering people from getting out of homelessness.
The goal of this thought process is to determine if the essential funds of an aircraft carrier are enough to provide a one-time payment that can end homelessness for every individual, giving them a proper amount of time to reestablish themselves in society. Forming a snapshot of what can be practically achieved and factors to consider with individual states.
To delve into this idea, I will first determine the actual cost of an aircraft carrier. Then, compare the number of homeless people in the United States, allowing me to allocate each person with a theoretical income. I will then analyze various states to identify an ideal recovery ground for homeless individuals, considering each state’s unique advantages and disadvantages. First, subtract each state’s taxes from an individual, then determine the cost of living index and identify the most and least expensive states. This analysis will help us understand what kind of effect limited funding would have, and the ideal situation is directing the funds as income to the homeless.
Section 1: The Cost of an Aircraft Carrier
When considering the intriguing proposal to allocate the cost of an aircraft carrier toward addressing homelessness, it’s essential to establish a reference point, as there have been many different designs, classes, and types of aircraft carriers throughout the years. Monderie Jones’ tweet didn’t specify a particular aircraft carrier model. However, the most commonly referenced aircraft carrier within the Reddit post (They did the math, n.d.) was the General R. Ford Aircraft Carrier (ACC). In addition, the General R. Ford aircraft carrier has plenty of data and reports on the ACC itself that can provide beneficial information to our analysis.
The General R. Ford Aircraft Carrier embodies military prowess, impressive capabilities, and advanced technology. It’s important to note that this carrier should be distinct from the Navy’s new development of Gerald R. Ford-class aircraft carriers, which are planned to replace the current fleet by 2025. The Gerald R. Ford Aircraft Carrier’s approximate cost is $12.8 billion, with an additional $37.3 billion presumed for research and development (O’Rourke, 2017). Our analysis will focus on the $12.8 billion figure, representing the recurring cost per carrier, while research and development is a one-time expenditure. This cost benchmark sets the stage for exploring the financial feasibility of reallocating such funds to combat homelessness.
Section 2: Homelessness Determined in the United States
Following the State of Homelessness in America report by the Council of Economic Advisers in September 2019 and the government website End Homelessness (Advisers, 2019) (State of Homelessness: 2023 Edition, 2023), it was found that the number of homeless people in the United States during 2019 was believed to be 552,830 people and has been growing by 2.2% every year sing 2017 (Advisers, 2019). As of 2022, the predicted amount of homelessness study was conducted again and determined that within the U.S., 582,462 homeless people (State of Homelessness: 2023 Edition, 2023) (Sousa, et al., 2022). A .7% difference from what was estimated in 2019.
The 2019 report sheds light on the alarming state of homelessness in the U.S., where over half a million individuals find themselves homeless on any given night, with a substantial portion resorting to living in conditions not intended for habitation. Homelessness, exacerbated by decades of flawed policies, is now a glaring societal issue that demands rectification. The report investigates the varying extent of homelessness across states, mainly focusing on the severe crises in major cities on the West Coast and the Northeast, notably California. In seeking to understand the driving factors behind these discrepancies, the analysis uncovers four critical areas of concern: housing market overregulation, the conditions of unsheltered living, the availability of homeless shelters, and individual characteristics contributing to homelessness. The restrictive housing regulations, for instance, have notably escalated home prices, pushing many into homelessness, with an estimate suggesting a 13% decline in homelessness should deregulation occur in 11 significantly supply-constrained metropolitan areas.
Unfortunately, in 2019, the world experienced COVID-19, and in 2021, only homeless people were recorded in shelters. This was due to the increased complications with COVID-19, decreasing the number’s reliability. To determine if the 2022 record is accurate, we evaluated it against the 2019 estimate and the overall trend in homelessness, as shown in Figure 2. It is found that the recorded number of homeless population follows the estimated population growth from 2019 and the overall trend. Determining the 2022 recorded homeless population number would be ideal for our analysis.
A comprehensive understanding of the cost index across all 50 states will help us determine the ideal state for homelessness, helping us find the ideal cost of living scenario. However, the cost of living index will not account for the difference between rural and cities but focus on the average across the state. Using the total population also follows this issue, as the homeless population is affected by the number of people in an area. In addition, on average, there is a recorded number of sheltered homeless, around 374,679 people yearly. As this population does have shelter, including this population eliminates homelessness. The concentration of homeless people throughout the United States also isn’t consistent, nor is it possible to isolate half a million people into one state. There is also the issue of unaccounted-for homeless people, a topic we will cover in part III. Therefore, further investigation will be continued in part two, focusing on the homeless population and estimating the cost for each individual.
Section 3: Analyzing Income and Cost of Living
Now that we have determined the cost of an aircraft carrier as $12.8 billion and the recorded number of homeless people as of 2022 as 582,462, it is possible to move forward with the income versus the cost of living index. Each person’s income would be $18,441.03 after federal taxes (Service, 2022) (Federal Income Tax Calculator – Estimator for 2022-2023 Taxes, 2023) because not even the poor are exempt from taxes. State taxes and the cost of living index must be evaluated to determine an ideal state for analysis. To evaluate the chosen state, it will be compared to the state with the highest state income tax and cost of living index and the state with the lowest cost of living index. Giving a glimpse of how the cost of living and state income tax can affect the recovery of the homeless. Unfortunately, due to the complexity of taxes for each state, no state is the same in how taxes are divided between people, and each state has its additional taxes. Some states exempt state tax, while others have an in-depth bracket range on how you will be taxed.
Instead of describing the tax codes and brackets that people would fit in while making $18,441.03 annually, I will look at the income people would make after state tax (Orem & Prays, 2023) (Vermeer, 2023). Figure 3 displays the final income that a homeless person would receive after state taxes. The highest received payment was achieved by states with a 0% income tax, and the state with the lowest income after taxes was Hawaii at $15,397.67, a $3,043.36 difference.
Due to the low income, we will look at these states with 0% state income tax and Hawaii. To analyze the difference between high and low options. Leaving us to look at Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming as high-income states and Hawaii as our low-income state.
Using the cost of living index, we can narrow the list further and determine the state with the lowest cost of living. The Cost of Living Index is a critical tool that measures the amount needed to cover essential expenses such as food, shelter, transportation, and healthcare, varying significantly across different state regions. This index is pivotal for employers in wage determination, government agencies in assessing intervention needs like Social Security benefits adjustments, and individuals contemplating relocation, particularly for employment opportunities.
The calculation of this index starts by establishing a national average cost of living as the baseline (set at 100) against each state’s average cost of living. For instance, a state indexed at 200 implies a cost twice as high as the national average, while an index of 50 denotes half the national average cost—figure 2 lists the cost of living index per state (cost of living index by state, n.d.). Figure 4 demonstrates the cost difference among all the states, where Hawaii has the highest cost of living and the lowest is Mississippi.
The national cost of living reveals that the average US household incurs $61,334 annually in expenses, implying that two people are bringing in income. Housing claims the most significant chunk at 34.9% of spending, approximated at $1,784 monthly. A single-family home’s median price is $273,992, with the average rent for a two-bedroom apartment at $1,154 monthly. Transportation consumes 16% of household spending, averaging $9,826 yearly—healthcare and food expenses average $5,177 and $7,317 annually, respectively. Monthly utilities cost averages $370.16. With a median household income of $67,521 and personal income averaging $35,805. We will focus our expenses on the average rent of a two-bedroom apartment, transportation, food, and utility costs for each state.
When compared, Each state with the highest income is found to have a wide range of cost of living. Finding that Tennessee has the lowest cost of living compared to each state, as observed in Figure 5. Finalizing that, we will review Hawaii, Mississippi, and Tennessee as settling grounds and determine the length of time a homeless person can care for themselves using the cost of living for each state.
To illustrate the budget trend over 12 months for the three states, Tennessee, Mississippi, and Hawaii. Figure 6 was generated with these states chosen to represent varied economic indicators, such as the highest cost of living coupled with the highest tax reduction, the lowest price of living index, and the highest income combined with the lowest cost of living index. Analyzing monthly budgets can shed light on how long an individual might be able to sustain themselves in each respective state based on their financial resources. The chart shows that Tennessee and Mississippi have comparable trajectories, with a minimal difference of roughly one month in budget sustainability. In contrast, despite its high income, Hawaii presents a stark difference; the available budget would be depleted in just 3 months, underscoring the high cost of living in the state.
Conclusion
Addressing homelessness is a multifaceted challenge that cannot be distilled into a single financial solution, even as significant as reallocating the cost of an aircraft carrier. While the presented thought experiment offers an intriguing perspective on the potential funds available, it also underscores the complexities of genuinely addressing and resolving homelessness. Factors such as state-specific taxes, cost of living, available resources, location, and individual challenges faced by the homeless population all play a role in determining the feasibility of such a proposal. Moreover, the logistical challenges of relocating large numbers of people to specific states and the potential strain on local resources and infrastructure further complicate the matter.
It’s essential to recognize that while financial resources are a crucial component, they are just one piece of the puzzle. Addressing homelessness requires a holistic approach considering economic factors and social, psychological, and systemic challenges. Solutions must be grounded in evidence, tailored to individual needs, and supported by a robust infrastructure that prioritizes the well-being and dignity of every individual. We will delve deeper into these complexities as we continue this series, striving for a comprehensive understanding that can inform actionable and sustainable solutions.
Works Cited
Advisers, T. C. (2019). The State of Homelessness in America.
Cost of living index by state. (n.d.). Retrieved from World Population Review: https://worldpopulationreview.com/state-rankings/cost-of-living-index-by-state
Federal Income Tax Calculator – Estimator for 2022-2023 Taxes. (2023, September 5). Retrieved from SmartAsset: https://smartasset.com/taxes/income-taxes#18IePBirni
Orem, T., & Prays, S. (2023, October 5). 2022-2023 State Income Tax Rates: What They Are, How They Work. Retrieved from nerdwallet: https://www.nerdwallet.com/article/taxes/state-income-tax-rates
O’Rourke, R. (2017). Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress. Congressional Research Service.
Service, C. R. (2022). Overview of the Federal Tax System in 2022.
Sousa, T. d., Andrichik, A., Cuellar, M., Marson, J., Prestera, E., & Rush, K. (2022). The 2022 Annual Homelessness Assessment Report (AHAR) to Congreess Part 1: POINT-IN-TIME ESTIMATES OF HOMELESSNESS.
State of Homelessness: 2023 Edition. (2023). Retrieved from end homelessness: https://endhomelessness.org/homelessness-in-america/homelessness-statistics/state-of-homelessness/
They did the math. (n.d.). Retrieved from Reddit: https://www.reddit.com/r/theydidthemath/comments/ve6w25/request_how_true_is_this/
Vermeer, T. (2023, September 5). State Individual Income Tax Rates and Brackets for 2023. Retrieved from Tax Foundation: https://taxfoundation.org/data/all/state/state-income-tax-rates-2023/