"had some traumatic event and fell into alcoholism and drugs"
This phrase is doing a lot of work for your argument -- the implication is that alcohol and drugs are like open manholes, and people are just falling in.
I believe in treating addiction. I also believe in removing stigmas associated with drug crimes. I think we should help people. But we shouldn't all assume that drugs cause poverty, 100% of the time. Poverty sometimes causes drug use. Hopelessness and despair (economically, socially) lead to chemical escapism.
My point is that not every drug addict is a victim of a disease which keeps him from contributing to society. People use drugs for a lot of reasons.
I am a Republican/Libertarian, and I take a small amount of offense to the accusation that we "just don't want to help." On the contrary, I believe the current strategies -- house them, feed them, give them clean needles -- is doing more harm than good. It makes the lifestyle sustainable without giving them any hope for something better.
A better way forward:
- Stop charging drug users with felonies that prevent them from getting jobs in the future
- Legalize almost all drugs, except for those that put the public at harm by causing psychosis.
- More mental health services, including committing more people. We're failing schizophrenics when we don't force them into treatment.
- Grow the economy. We need more jobs for the lower rung of the labor force. The first step towards despair is often unemployment.
- If we're going tax dollars, let's create public jobs for people. I don't mind if subsidized housing is part of the package.
- Stop creating homeless havens. It's counterproductive. You can't allow people to defecate on the street in broad daylight and call it compassion. When you do that, people travel to that neighborhood from all over because it's a place where they won't be hassled. It becomes impossible to run a small business there, families leave, the neighborhood dies.
I'm not saying we should fill the jails with the homeless. But why not provide public restrooms, and then arrest and/or commit those who are using the sidewalk? If we need someone to maintain the restrooms -- pay the homeless.