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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: Over the last decade, the decrease in the construction of affordable housing by local authorities has led to a significant shortage. As a result, many families cannot find suitable housing options, pushing them into homelessness.
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Rising Rents: The rise in rental prices has outpaced government support. Many families are unable to afford escalating rents, leading to an increased likelihood of eviction and homelessness.
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: The government could promote the use of modular homes, which are quick to build and could address some immediate housing needs. This could help alleviate the market demand, providing more affordable options.
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Increase the Levy on Land Hoarders/Empty Properties: By introducing taxes on properties that are left vacant, this could incentivize owners to either sell or rent out these homes, thereby increasing the housing supply available for those in need.
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
A cost-benefit analysis would help to assess the financial implications of the 9,500 new social housing units against their expected benefits. This analysis ensures that the expenditure aligns with economic efficiency, evaluates alternatives, and determines if the financial resources will be utilized in the best possible manner to fulfill housing needs effectively.