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It is a fact that homelessness has continued to rise. It doubled under the previous Administration, but that does not help us. The Government intend to reduce — and probably eliminate — the homeless by 2008. [Interruption.] I am sorry, but the House knows that I have problems with English. I did not go to public school, so there is a limit to what I am able to say. Opposition Members can be such twits. We believe that we can eliminate the problem of homelessness by providing more resources, which is precisely what we are doing.
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Homelessness is just the most intensified form of unemployment, where in addition to loss of job or income, there is loss of housing and lack of access to social services. There are now millions of people homeless since the last 15 years, because of the Capitalist offensive to destroy the unions, beat back the gains of the civil rights struggle, and do away with the affordable housing sector in favor of yuppie gentrification in the cities.
The housing problem that generates homelessness has been linked to the aggression of rent control, zoning restrictions, building codes, and construction moratoriums, all of which limit the availability of inexpensive housing. When construction is limited and landlords can charge only a minimal rent, they naturally rent to only the most affluent ten-ants. rather than the poor who might be late in their payments. Once again, aggression hurts those it is supposed to protect.
In my constituency there were a large number of privately rented flats and rooms occupied mostly by low-paid single people or by low-paid or unemployed families. Now those people are being persuaded—I use the word advisedly—to leave those places so that they can be converted into up-market flats or second or city homes for the wealthy. Those tenants are literally forced on to the street and come under the care of the local authority, if the local authority can provide anything. There is a great increase in homelessness, but there is no increase in the number of homes available at cheap rents. Decontrol has forced those people on to the streets and caused homelessness. It is the enemy of good housing and working-class people. We need much more money spent on local authority and social ownership schemes to provide cheap rented houses for the people who need them, not for the yuppies that the Conservative party wants to bring into central London.
In the wake of the 1992 L.A. riots, Bush lowered standards of creditworthiness for inner-city home buyers. But it was Clinton who opened the floodgates of housing credits by threatening, on the strength of misrepresented agency data, to find lenders guilty of “redlining” black neighborhoods. He used the Carter-era Community Reinvestment Act to pressure banks politically. Black homeownership rose by 25 percent between the mid-1990s and the mid-2000s. This was the era of subprime loans, which would bring on the crash of 2008 and the ensuing global recession. The American media has never been comfortable acknowledging that minority homeownership programs were at the root of an international economic calamity. But economists (notably Atif Mian and Amir Sufi of Chicago, and Viral Acharya of NYU) have understood it all along, and the progressive Cambridge University historian Gary Gerstle, in his recent The Rise and Fall of the Neoliberal Order, puts the Bush-Clinton subsidies squarely at the center of the 2008 crash.
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