Ihab Salloum[ad_1]
**One of the Cornerstones of Capitalist Economic Theory: The “Efficient Market Hypothesis”**
The efficient market hypothesis is a fundamental concept in capitalist economic theory. It is widely taught and practiced in the business, governmental, and academic sectors of the United States of America. This hypothesis argues that a free market is an efficient market, meaning that it effectively meets the needs of consumers at affordable prices. However, I strongly disagree with this notion.
**The Rationality of Markets and Human Involvement**
The efficient market hypothesis states that markets are rational and automatically adjust prices to match the supply and demand of various commodities, such as food, clothing, housing, and gasoline. However, one critical flaw with this hypothesis is that markets are not rational since they are created by human beings, not computers. From my observation, most human beings are not rational. In fact, they often appear to be famously irrational.
Therefore, it is reasonable to conclude that markets created by human beings will not naturally fluctuate based on the needs of consumers. Instead, they tend to charge prices that can be as high as sellers can get away with. This poses a significant problem, especially for individuals who cannot afford the high prices set by sellers, such as those who live in a snow-covered environment. Should these individuals be forced to sleep outside in the snow? I firmly believe the answer is no.
**The Plight of Homelessness and the Lack of Support**
During my visit to Boston, Massachusetts in the spring of 2012, I had the opportunity to meet numerous homeless individuals residing in the city. I was astounded to discover that there were over ten thousand homeless people in the city, despite the large number of available houses and apartments for rent. Many of the homeless individuals I encountered were former businessmen and women who lost their jobs due to mass company firings during the recession of the 1990s and 2000s.
While exploring the struggles faced by the homeless in the United States, it became evident that the formal and informal networks established to help them provided little effective assistance when it came to providing housing. These organizations often offered amenities such as food, clothing, toiletries, and occasionally showers, but making real progress towards permanent housing seemed frustratingly elusive for most homeless individuals. This lack of crucial housing support led to a deep sense of despair among many homeless people, often resulting in self-destructive behaviors and angry outbursts.
Furthermore, this despair seemed to intensify due to the self-hatred experienced by many homeless individuals after such outbursts. It was disheartening to witness their deepening predicament as they turned to alcohol or drugs to numb their feelings of resentment and self-hatred. The inclusion of these incidents of self-medication on their “client profile” often categorized them as “bad clients,” leading to their forced departure from homeless shelters or burdensome anti-substance abuse programs. Many would find themselves with nowhere to go.
**Surviving Extreme Conditions and Inefficiencies in Housing Markets**
In cities like Boston, Massachusetts, Manchester, New Hampshire, Miami, Florida, San Diego, California, and Los Angeles, California, it was common to encounter homeless individuals forced to endure months, years, and even decades living outside, sometimes in snow and freezing temperatures. Tragically, it was not uncommon for people to die from sleeping outside during severe winter cold spells. In a rare effort to prevent such tragedies, police officers in Cambridge, Massachusetts, would patrol the streets during snowstorms to find people who had fallen asleep outside.
During my exploration of Cambridge, Massachusetts in freezing temperatures, I came across individuals bundled up inside cardboard boxes, attempting to survive the night without freezing to death. Additionally, I observed that many major cities, including Boston, Massachusetts, Miami, Florida, San Diego, California, and Los Angeles, California, had their main homeless shelters located downtown, within close proximity to luxury residential condominiums with vacant apartments for rent.
Contrary to what is taught in college economics courses, the free market for housing in the United States is far from efficient. In fact, a closer examination of many major urban housing markets reveals severe inefficiencies. The stark contrast between the contentment of well-heeled urban professionals and the struggle of the homeless leads to levels of hostility that are disheartening and even dangerous.
**The Impact of Homelessness on Unity and Connectedness**
The predictable frustration experienced by these two vastly disparate groups, the “haves” and the “have-nots,” often results in conflicts. Those who have homes retreat indoors, and the police are sometimes called to deal with the homeless, forcing them to leave the vicinity. Consequently, many homeless individuals develop a growing resentment towards the United States of America and those perceived as wealthy.
After witnessing the social divisions and other unrest caused by homelessness and wealth inequality in Boston, Massachusetts, I traveled to Manchester, New Hampshire, where I observed the same corrosive social dynamic at work, further undermining our national unity and sense of connectedness. Unable to find work, I then flew to Miami, Florida, where I witnessed the same depressing social inequality amidst the winter-long festivities of a popular international tourist destination.
In Miami Beach, I noticed the same super-luxurious residential high-rise condominiums that I had seen in Boston, Massachusetts. It was concerning to see these buildings constructed during a period marked by job offshoring and skyrocketing corporate profits rather than providing affordable housing for those in need. Disturbingly, many homeless women in Miami Beach felt compelled to sell their bodies to meet basic necessities such as food, clothing, shelter, and medication.
Throughout my travels, it became clear that the issue of homelessness and the inefficiency of housing markets fosters social divisions, hostility, and a sense of disconnectedness. This ongoing problem jeopardizes our national unity and calls for a deeper examination of the systems in place to support those in need.
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