No, it is more of a "not being able to solve a regional/national problem" locally. If Seattle (or "Freattle" as it is called in grifter circles) is the best place to go and set up a tent, do decriminalized drugs, and shoplift with impunity, then...yes, they will attract a disportioncate part of the problem.

And yes, if the problem can't be solved locally (too harsh, push the problem somewhere else; too soft, attract more of the problem), why should be in the latter category? Is Seattle just a convenient sacrifice?