[CamB]

I had the stats for NZ yesterday, and the multigenerational welfare families are definitely the exception (well under 10% of beneficiaries). They are a very public exception, however.

I am not sure that I know the answer to your question. Assuming there was a job (or that they are on welfare) which city/town should the "section 8 family" move to?

Is the problem that LA is too expensive, or is the problem that low wage workers in LA don't get paid enough?

This is pretty complex stuff. For instance, my initial reaction to your question about subsidised rents is that the landlords would suffer! However, I had to modify that in my mind, because I think it would create slums. If a significant proportion of the population can only afford $300/month in rent, then the value of the housing drops. If the rents won't drop, then more people have to squeeze into the same space (to afford, say, $600/m).

If they move away instead, there might be no jobs at all, or they would have to find accommodation for $300/m (which I would expect doesn't exist in your country - building costs would be too high).