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The number of homeless families (in Ireland) has increased by 87% since June 2015 - Leaving Cert Economics - Question 16(c) - 2021
Question 16(c)
The number of homeless families (in Ireland) has increased by 87% since June 2015. (i) Discuss two reasons for the increase in the number of homeless people in Irel... show full transcript
Worked Solution & Example Answer:The number of homeless families (in Ireland) has increased by 87% since June 2015 - Leaving Cert Economics - Question 16(c) - 2021
Step 1
Discuss two reasons for the increase in the number of homeless people in Ireland.
Answer
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Lack of Affordable Public Housing: The reduction in the building of homes by local authorities has contributed significantly to the increase in homelessness. Over the last decade, fewer affordable housing options have meant that many families are unable to find stable homes, resulting in an increased number of people living in temporary or emergency accommodation.
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Rising Rents: The cost of renting has escalated beyond what government support can cover. Many families that once could afford their rents have been pushed into homelessness due to job loss or increased living costs, highlighting the disparity between rental prices and available financial support.
Step 2
Outline two economic measures, other than social housing, that could be taken by the Irish government to help reduce the number of homeless people in Ireland.
Answer
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Modular Housing Development: The government could promote the construction of modular homes—these are low-cost, fast-built housing solutions. Accelerating the provision of such housing could help meet the growing demand for affordable places to live.
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Re-zone Land for Housing Development: By allowing certain areas to be re-zoned for residential use, particularly where there is high demand and limited options, it would enable the development of more diverse housing types and help alleviate pressure on the rental market.
Step 3
Explain why the Department for Public Expenditure might have used a cost-benefit analysis before deciding on this expenditure for social housing units.
Answer
The Department for Public Expenditure is likely to have conducted a cost-benefit analysis to ensure that the long-term benefits of constructing new social housing units would justify the initial expenditure. This analysis would take into account not only the financial implications but also the social impact of reducing homelessness, improving community well-being, and potentially lowering long-term costs associated with emergency housing services. By evaluating these factors, the decision-making process can be more transparent and aligned with the best interests of taxpayers.