A study has debunked stereotypes of homeless people spending more on drugs and alcohol instead of food and basic housing.
According to a group of researchers from the University of British Columbia (UBC), homeless people are more likely to save money after being given $7,500 in cash as part of the study.
The study tracked the spending of 50 people experiencing homelessness and compared their spending habits against those of 65 other homeless people who did not receive any cash.
They discovered that on average, each cash recipient spent 99 fewer days homeless than the 65 homeless did, as well as costing society less by using shelters less frequently.
“The impact of these biases is detrimental,” Jiaying Zhao, an associate professor of psychology at UBC who led the study, said in a statement. “When people received the cash transfer, they actually spent it on things that you or I would spend it on – housing, clothing, food, transit – and not on drugs and alcohol.”
Researchers made sure the cash was in a lump sum “to enable maximum purchasing freedom and choice” as opposed to being given in installments.
Zhao added that they did not include participants with severe levels of substance use, alcohol use, or mental health symptoms because the researchers felt that those groups did not accurately represent the bulk of homeless people.
“Rather, they are largely invisible. They sleep in cars or on friends’ couches, and do not abuse substances or alcohol,” said Zhao.
This comes as homelessness has been a critical issue in the United States. In the liberal city of Los Angeles, for instance, Mayor Karen Bass declared a state of emergency during her first day in office to combat the homeless crisis in the city.
That plan includes identifying city-owned structures that could be converted into homes and renting out vacant apartments and hotel rooms throughout the city to the homeless.
According to the most recent Los Angeles Homeless Services Authority survey, 41,980 people are homeless, a 1.7 percent increase from 2020. Bass’ declaration also said that the number of homeless people in LA is about 18 times higher than in New York City and 14 times higher compared with Chicago.
