This is evil (little e). We'd be better off with the position they fill being vacant. Should they ignore the law altogether? Certainly not, but we employ humans so that it can be enforced with intelligence and compassion. I have a suspicion that those who would engage in this kind of cruel enforcement on the low end are the first to give favors to the wealthy on the flip side. That's just what corruption looks like from the bottom.
This reminds me of two things I saw on Hacker News. One was some TED talk which mentioned a hospital janitor who knew when to bend the rules when cleaning around grieving relatives. The other item was some study that demonstrated that if experts were to follow a set of instructions for a task that they themselves wrote, then they would fail at that task.
Anyway, yes, the system tends to fail when people work outside of the system. I'm not sure why this guy can't live in the subsidized housing until he has enough money to legally run a business and pay his own rent, though.
This man wants to make an honest living, and you're criticizing him for not taking welfare instead? Believe me, this man is not the reason for the failure of the system.
It's unclear how living in subsidized housing would help him with his permit problem....
He seems to think that he's better off living on the street than being in the subsidized housing that is available to him. Maybe he's wrong, but shouldn't you at least offer some specific supporting evidence? (No, "housing is good" isn't enough. Public and subsidized housing can be quite bad.)
You do have specific knowledge of subsidized housing in SF, right?