 Doomloop. Doomloop. Are you familiar with the term Doomloop in San Francisco? Doomloop particularly applies to San Francisco so the idea of a Doomloop is you know things are in let's say in a city like San Francisco what you get is maybe you get a COVID and what happens with COVID is downtown shuts down and people start working remotely so they fulfill people going to downtown and that means that you know people start businesses in downtown start closing and downtown deteriorates and maybe homeless people move in and and as a consequence of that now when people start opening up and wanting to come back to the office they go whoa I don't want to go back to San Francisco downtown because the stores have closed and the homeless have come in so maybe we'll we'll go somewhere else and so that increases the kind of the stagnation of the downtown which causes more stuff to close down more homeless to come in and fewer people to move in and fewer new people to move into the city and and you get the spiral and it just gets worse and worse and worse and it's hard to break it because and of course part of this is the fact that businesses move out causes your tax revenue to go down and therefore you can't provide the infrastructure you can't deal with a homeless problem the if you can't deal with a homeless problem then again more companies leave and on and on and on it goes and San Francisco is clearly experiencing this kind of doom loop particularly in its downtown and with companies leaving the city its tax revenues declining significantly not only companies but of course individuals as well and the explanation for this has been COVID COVID caused this COVID that's what stimulated all this that's what got it going that's what caused this to all happen and there is an excellent article today in Pirate Wire which I referred to you a number of times about how it wasn't COVID wasn't COVID indeed the beginning of the San Francisco doom loop started two years before COVID in 2018 with the passage of something called proposition C proposition C prop C a prop C was hailed and fought for by the largest employer in San Francisco last technology employee in San Francisco sales force the CEO of sales force Mark Binioff Mark Binioff is known as the probably the most progressive explicitly altruistic explicitly guilt-ridden explicitly pro every social leftist agenda item out there in the world Mark Binioff is part of that he is the CEO founder and CEO of sales force he succeeded in spite of all that which is a mystery but he's all for social responsibility and DEI and everything everything right anyway Mark Binioff really fought for prop C and what prop C did was prop C was going to prop C the proposal was to double the revenue tax on companies based in San Francisco so double the taxes on businesses but explicitly use all the new available revenue for one purpose and one purpose only and that is to funnel it into a new department of homelessness and to solve the homeless problem prop C has raised about a billion dollars a billion dollars for one city San Francisco to deal with one problem the homeless problem over the last five years when a prop C was passed a number of tech executives fought it including Patrick Collison from Stripe and Jack Dorsey from Square Jack Dorsey the founder of Twitter and it was fought even by the mayor even the mayor said this is a bad idea but it passed anyway and Mark Binioff and the day it passed published this tweet prop C's victory means the homeless will have a home and help they truly need let the city come together in love for those who need it most there was no finish line when it comes to helping the homeless thank you amazing supporters of prop C so homeless will have a home well five years after the passage of prop C a billion dollars spent on homelessness the homeless problem is bigger than ever in San Francisco more homeless in the street more problems and indeed the homelessness is a big part of this doom loop although another big factor of the doom loop and how it started was guess what happens when you dramatically raise taxes on businesses in your city so even before COVID in the years leading up to COVID companies were already leaving San Francisco in large numbers and creating the so called doom loop and creating the crunch of revenues for the city government that ultimately resulted in as resulted in the inability to deal with infrastructure and the fact that companies are leaving office buildings are empty no revenue for restaurants and and retailers in downtown and on and on and on you go right all started not by COVID but started by increased taxes by increased taxes increasing the taxes that were fought by many in the business community but Mark Binyoff and those who supported Mark won the day and and they got it passed now we can talk about homelessness and why homelessness is such a huge problem in San Francisco but certainly one of the problems of homelessness in San Francisco there are many housing costs a big part of it but there are many problems in San Francisco but one big one is the fact that San Francisco like Los Angeles provides homeless people with housing free small houses but houses guess what happens when you buy something for free uh if you supply it for free get help guess what happens to demand for something that's supplied for free it increases so what's happened in San Francisco is not only is the cost of housing in San Francisco very high and is caused to some extent homeless people in the in the Bay Area but add to that the fact that now if you're homeless in San Francisco down the road you will promise free housing and and real housing in a in a in an actual apartment well homeless people or marginally homeless people from all over the state maybe all over the country are going to come to San Francisco and say I'm here where's my free apartment the most stuff you offer for free the more than a man for that free stuff is going to be there so the homeless problems only increased in San Francisco the more money is being poured into providing homes for homeless people and these are not temporary homes these are permanent homes and therefore you don't people are going to flock to San Francisco to inhabit those even if it means not today in the future and this means drug addicts from all over the country are going to come to San Francisco to get known only the free treatment at easy access to drugs but also easy access to real estate and the same is true of the mentally mentally ill so San Francisco becomes a magnet for homeless people from all over the the country certainly all over the state and the billions or the hundreds of millions of dollars stolen from San Francisco businesses is poured into providing these homeless people with residences but that mysteriously don't ever solve the homeless problem because the supply of homeless people never ends never ends keeps going so you need a solution to homeless problem a solution to homeless problem even if you take into account strong government involvement in it it would be quick and relatively cheap and it would be would involve making sleeping on the streets in San Francisco illegal and providing temporary shelter not housing shelter of homeless people in the outskirts of the city in not very nice places in not in places that offer easy access to drugs and and basically not give them free stuff make it expensive to be homeless in San Francisco and you'll get less homeless people in San Francisco supply demand incentives incentives actually work and you know you can provide treatment centers you can provide a lot for the for the drug addicts and so on you can provide a lot at literally a fraction a fraction of what San Francisco is spending right now on homeless by the way all this money is being funneled through a whole variety of non-for-profits non-for-profit to vote lobbied for proposition see a bunch of non-for-profits who you know who are you know maybe they've got good intentions maybe they don't who knows but who basically living off of this massive tax revenue the non-for-profits getting fed by tax revenue by tax revenue note that the mayor of San Francisco is never for this the progressive mayor of San Francisco is always against this this is something that was brought and promoted by the non-profits and got massive support by bini off and and certain business leaders in the community