Pratt details an alleged corruption model where an NGO received $57M in city funds to purchase a building listed for $11M just days earlier. This highlights how non-profits can use opaque real estate transactions and developer kickbacks to profit from public grants without providing services.

The Los Angeles homelessness crisis is an example of an "inverse correlation" problem. When pouring hundreds of millions of dollars into a system only makes the problem worse, it's a clear indicator of systemic fraud and a "homelessness industrial complex," not a need for even more funding.

San Francisco's non-profits are often paid based on the number of homeless individuals they serve. This creates a perverse financial incentive to maintain and manage the homeless population like a "flock" rather than pursuing solutions that would permanently reduce their numbers and, consequently, the NGO's funding.

Various organizations, including housing developers and NGOs, receive significant government funding to address homelessness. This can create a financial incentive system where fortunes are made from a problem that is not necessarily being solved effectively.

Pouring more money into homelessness without fixing the underlying incentive structures does not solve the issue. Instead, it funds the bureaucracy around the problem, making it larger and more entrenched, as evidenced by NYC's budget nearly quadrupling while the homeless population grew.

A $5 million city program provides free beer to homeless alcoholics under the guise of treatment. This illustrates how well-intentioned "harm reduction" policies can devolve into state-funded enablement of addiction, becoming counterproductive and absurd without a clear path to recovery.

NYC spends more per homeless person than the median household income, yet its homeless population is growing. This suggests that without proper outcome tracking and incentive alignment, massive funding can simply make a social problem more comfortable and entrenched, rather than solving it.

For-profits must create value or die. Non-profits survive on "narrative pressure," convincing donors their cause is vital. This can create a perverse incentive to keep the problem alive, ensuring their own relevance and funding.

The drug crisis may be perpetuated by a system that benefits from its existence, including pharmaceutical companies, bureaucracies, and consultants. The proposed solution of providing more prescribed drugs is framed as ironically profiting the same industry that helped cause the opioid crisis, creating a perverse incentive against recovery.