Will signs work?

I say no.

The City of St. Paul is looking to curb panhandling in busy intersections. It’s looking to encourage people to donate money to organizations that help those who are unhoused instead of handing out cash. FOX 9

City leaders say they’re doing it for public safety reasons. It’s putting signs up at intersections to bring awareness to drivers on how to help those who are unhoused. 

This is so Minnesotan. If we simply ask nicely, the good people of St. Paul will listen and do as we say! Let’s ignore incentives and inclinations.

There are two groups and two forces at work. The well enough to do in their cars are compelled at the sight of the need to fulfill an urge to act. Their instincts are crying to lend a helping hand. This is so easily accomplished by reaching into a wallet for a few dollars and rolling down a window. Searching for a reputable organization to direct funds to is tedious and not very rewarding. When you send in a check, you just get a thank you but no human touch.

Incentives for Group 1: Sign 0 Direct Give 1

The second group is the panhandlers. They have a need and are working to externalize cash from motorists’ desire for mutual aid. Although public policy types may rationalize that these folks really need this, and really need that, and it’s all because of X, does not eliminate the clear immediate need for cash. That’s their mission. The solution in the sign does not meet this need.

Incentives for Group 2: Sign 0 Direct Give 1

The sign idea does not work. If vouchers were given to motorists who want to reach out and touch someone to make a difference, and the panhandler could take said voucher to the organization for cash, among other things, then you would meet the incentives for both Groups 1 and 2. The organizations would also have a shot at ‘selling’ the panhandlers on their other services. If successful, the panhandlers would no longer need to hit the curbs with their stools and cardboard signs.