Homelessness and unemployment are features of capitalism. It's not that they're incompetent at solving the problem, they don't want to solve it and don't see it as a problem. They think it's good that they can blackmail the population into abusive work conditions and into paying ridiculous amounts of money for rent.
Channel 5's recent documentaries also made a good case for local government + developers conspiring to lower property values in specific areas so they can be purchased and "revitalized" (gentrified). The police herd the homeless and addicts into an area and watch residents sell cheap. Then the developers buy up the buildings, redo them, and the police move the homeless to a new location.
On the contrary: We killed a bunch of Russians, so this was actually a really good investment.
You see we in the west (tm) are the good guys because that's how we think