Should we as taxpayers foot the bill for New Orleans?
(USAToday.com) The definition of insanity, according to Benjamin Franklin, is doing the same thing over and over and expecting different results.Ben, welcome to New Orleans.
(New Orleans: How will these hurricane-hit homes be rebuilt? Will they? / By Alex Brandon, AP)
Nearly three-quarters of 14,534 New Orleanians who’ve applied for federal grants say they’ll rebuild their Hurricane Katrina-damaged homes in flood areas even though city restrictions are unlikely to protect their homes if the levees fail again, USA TODAY’s Anne Rochell Konigsmark reported last week.
The latest plan calls for the Louisiana Recovery Authority to dole out grants of up to $150,000 to cover uninsured losses, which residents can use to rebuild or relocate. To qualify, homeowners in and around the city must raise their homes by at least 3 feet and purchase federal flood insurance.
So let’s see. Federal taxpayers will be subsidizing reconstruction in flood areas, underwriting the insurance on those homes and will no doubt have to bail out the flood insurance program if the homes get wiped out again. The program collected only $2.2 billion last year in premiums but will pay out more than $20 billion in Katrina claims, leaving taxpayers on the hook for the rest. Worse, the program encourages development in areas subject to flooding not just in New Orleans, but everywhere by offering insurance at bargain rates in areas where private insurers fear to tread. That increases the population in vulnerable areas, leading to more costly disasters.
It is an absurd use of taxpayers’ money, to which New Orleans is adding an expensive new twist. (more…)
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I’m a little mixed on this issue. While I agree that it is a waste of TAXPAYER dollars (Notice the distinction here. Private funds should be used FIRST) to go to folks that are going to rebuild in this disaster zone, unfortunately it would be an inconsistent move for the government. Here in the western half of the United States, folks regularly rebuild in fire and earthquake zones with government assistance. Government opened Pandora’s box involving itself in the disaster relief business in my opinion.
This document composed by the CATO does a good job articulating what I suggested earlier.
I am glad that u made the last statement. Rich folks build homes and when mother nature tears them down the government rebuilds them in the same spot. Yes these people should be allowed to rebuild with assistance.
Comment by Saudia | October 26, 2006
This is a difficult issue to solve, which is why the debate is so spirited. The real victims are people who have placed their faith in institutions that have failed them. The local/state/national government criminally failed in its obligation to protect its citizens, or at least inform them of the danger. And there will be a special place in hell for insurance companies that are trying to wriggle loose from their obligation to the insured. The aformentioned need to fulfill their obligations to the citizens by providing compensation for property that has been lost. However, for now forward, anyone who chooses to remain in harms way cannot claim they were not warned.
As for how New Orleans should be rebuilt, I do not believe this is for non-interested of New Orleans to decide. Private entities, citizens and businesses, should decide how much the sentiment “We can’t imagine the U.S. without New Orleans” is worth in dollars.
Comment by Brian | October 26, 2006
If Louisiana was given the royalties from the oil that is being extracted off its shores, this would be one of the richest States in the Union. If this occurred, they wouldn’t need the government help. Something is wrong with this picture. Give them their royalties and let them re-build themselves. This is only fair.
Comment by cynthia | October 26, 2006
While I do see your point, the one thing you have to remember is that Louisiana is part of a union and not a stand-alone state. Also, correct me if I am wrong here, but I think that those facilities are refineries and not oil docks. We have the same thing out here in Cali.
Comment by Duane | October 26, 2006
Yes and california gets a pretty penny of the money generated by those oil fields. New Orleans gets next to nothing.
Comment by Saudia | October 27, 2006
Saudia,
There are only two oil extraction platforms in Huntington Beach, CA. The rest are connected to oil REFINERIES (just like in the case of Louisiana). Because the in-ground oil is mostly gone in tha region, tourism has become the main cash cow for that city.
Read this Wikipedia entry to understand the main function of the refineries in Louisiana.
Comment by Duane | October 27, 2006
Free Money to Pay Your Bills! Never Repay!
Comment by Matthew Lesko | November 8, 2007