Conservative Economics Lead To Foreclosures and Tent Cities in California

October 14th, 2008

Foreclosure Crisis

Many are of the view that conservative economics have led to foreclosures and this in turn has given birth to the tent cities in the suburbs of California.

By the rail tracks and below the roar of planes is the tent city – an address for homeless Americans. It was never a gloomy part of the suburbs but a once booming area that has been reduced to this sorry state – thanks to foreclosures.

The camp is noisy and dusty. It debuted with 20 inhabitants in July this year and now numbers have swelled to 200. It is a motley collection children and adults lying to the east of Los Angeles. All are victims of the foreclosure crisis. It is the stuff that novels are based on and brings to memory Steinbeck’s Grape of Wrath, written against the background of the Great Depression.

As more families succumb to foreclosures so does the social cost increase in terms of homelessness, criminal activity with attendant diseases. The tent city is a symptom of the wider phenomenon known as the economic slump. It is just a matter of time before more tent cities crop up. Some foreclosed victims are staying in motels but the tent cities are the only alternatives when the money runs out. The foreclosure victims do not directly come to the streets said Jane Mercer, an activist. First they look around for temporary shelter in motels and with friends. Next they turn to charity and finally on to the streets. This then becomes their final address.

Steve declines to give his real name. He is 50 years old and moved in to the tent city about four months ago. He lives off Social Security. There is no work available and rents are too high. As house prices drop down, rents shoot high. For Steve there is no other option but the streets.

Foreclosures are riding high with the filings having gone up by 100% according to RealtyTrac. The prediction is that over half a million will succumb to foreclosures within the following two years. In the national foreclosure race California ranks second. In California the worst affected pocket is San Bernardino County with a foreclosure rate of 1:43. In some blocks in Cleveland 60% to 70% of the houses are boarded up.

Residents and authorities are noticing an increase in crime and diseases with the increase in foreclosures.