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The word "homeless" was itself a euphemism for more negative valenced terms -- bum, vagrant, etc. If "unhoused" is meant as a corrective to it, it means that the negative valence of its predecessor words has transferred to the euphemism -- and will do so to its successor.
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To be fair, it works up to a point. Homeless is in fact more neutral. I use it almost exclusively in neutral ways, and one of the older ones when I’m being insulting. “There’s been a 10% increase in homelessness” vs “you look like a bum.”
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A more basic question is whether the temporary sensitizing to valences permanently increases empathy and lowers temptation to be negative. In my case it has. I use homelessness-based insults much less than 10 years ago.
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Part of it is that after moving to west coast I see them more. They’re more than punchlines on south park. I think euphemism treadmills are dumb, but the underlying intent is humane.
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A harder question is whether insults and dark humor based on dehumanizing conditions(homelessness, disabilities etc) are okay. I think there’s a place for them. They help us process harsh realities that could happen to us individually and we do share collective responsibility for
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Euphemisms are helpful when they actually help the people being referred to experience more dignity and sense more humanity in how they’re being treated. When they seem insincere and/or more about making others feel less guilty or avoid harsh realities, they are dumb.