Spot on analysis HJohn, and a succinct outline that typifies how our social cottage industries work. 
Indian Industry is larger but the Homeless Industry works the same way. 
Bureaucrats, lawyers, activists, advocates and sundry camp followers can only make money by perpetuating the "problem".  
Actually solving things would put too many people out of work.
With few exceptions,  governments of all stripes have just learned to live with this parasitic drain on revenue.