You're right, but I don't believe we need a new social theory for governments to operate under. I'm offering a possible free market solution, for which government has already provided the tool.

Homelessness is probably a fairly big problem for most major cities. All those individuals who want, with all their hearts, government to fix that problem could just team up, put their resources together and open a foundation for each major city. These foundations could network with each other. Exchanging knowledge, and maybe even helping each other financially when necessary.

Rich individuals and businesses would have a way to support the needy, while at the same time saving on taxes, if the foundations qualify as charities. Of course the normal people who want can also donate and receive the same tax breaks.

Depending on the sum of donations, theses foundations could feasibly provide free health care, food and clothing, a safe place to sleep and even help searching for jobs.

And a side effect would be that Government wouldn't have to spend so much...possibly lowering it's debt ceiling. It would only need to insure that the foundations are doing what they're designed to do.

It seems to me that this could be a win for all involved.