Minimum Wage Increase The Level of Homelessness

Understanding Homelessness: A Complex Social Issue

Homelessness is a multifaceted social issue with a myriad of contributory factors. Individuals can become homeless due to economic hardships, unforeseen personal issues, or a combination of both. The cycle of homelessness can be triggered by a variety of events such as job loss or unexpected bills that exceed one's income (National Alliance to End Homelessness, 2021). In addition, the challenge of qualifying for a new job or aid program often requires a home address, leaving homeless individuals with limited options for solutions. To effectively eradicate homelessness, we must demand that our elected officials allocate significantly more resources towards housing, poverty alleviation, and mental health support. When the government takes decisive steps to address the factors contributing to homelessness, society will observe a tangible decrease in the homeless population.

The Impact of Minimum Wage on Homelessness

A significant factor contributing to homelessness is the inadequacy of the minimum wage. In the United States, there is no state where a person can afford a one-bedroom apartment while working a full-time job at minimum wage (National Low Income Housing Coalition, 2022). For instance, to rent a one-bedroom Fair Market Rent (FMR) apartment, Jane would need to earn $15.50 per hour, which is more than twice the federal minimum wage of $7.25 per hour. Even the proposed federal minimum wage of $10.10 per hour would fall short for Jane to afford such an apartment. Although some argue that minimum wage is intended for entry-level workers and not meant to be a livable wage, the economic reality is that many people rely on minimum wage jobs to survive. Adjusting the minimum wage to a universally livable level would enable more individuals to afford housing.

The lack of affordable housing and the low minimum wage are intertwined issues exacerbating homelessness. Each year, the availability of affordable housing declines significantly. For example, many individuals are drawn to cities like Denver due to their perceived opportunities, only to discover that living costs are three times higher than in their hometowns, leaving them unable to rent or purchase a home and ultimately ending up on the streets (Smith, 2023). The widening gap between rising rent prices and stagnant wages continues to expand annually, putting many at risk of housing instability and homelessness. According to recent statistics, 6.7 million households spend more than 50 percent of their income on rent (Joint Center for Housing Studies, 2023).

The Role of Gentrification in Homelessness

Gentrification has emerged as a growing concern within the homeless community. This process involves a financial transformation in a previously disinvested neighborhood through real estate investments, leading to changes in the income level, education level, and ethnic composition of residents. The displacement of low-income residents results from rising gentrification rates and increased competition for affordable housing. Consequently, low-income individuals struggle to find reasonably priced living spaces. With all the challenges associated with renting an apartment, it is no surprise that many people find themselves homeless. Unless proactive measures are taken to increase the availability of affordable housing, raise the minimum wage, and reduce rent costs, countless individuals will remain unable to secure housing.

Shifting Perceptions of Homelessness

Homelessness is often perceived as a consequence of personal failure. Many believe that homelessness could never happen to them, yet countless individuals live the harsh reality of having nowhere to call home. Public assistance is on the decline, while the number of homeless individuals and those with mental health issues continues to rise. This underscores the urgent need for the government to allocate more resources towards ending homelessness. Americans can contribute to addressing this epidemic by advocating for homeless individuals, educating themselves on the issue, volunteering at homeless shelters, or donating old clothes. By taking collective action, society can make significant strides towards solving the homelessness crisis.

References:

• Joint Center for Housing Studies. (2023). The State of the Nation's Housing. Cambridge, MA: Harvard University.
• National Alliance to End Homelessness. (2021). Homelessness in America: Overview of Data and Causes. Washington, DC.
• National Low Income Housing Coalition. (2022). Out of Reach: The High Cost of Housing. Washington, DC.
• Smith, J. (2023). "The Impact of Rising Costs in Urban Areas." Journal of Urban Studies, 12(3), 45-67.