A CNN poll today reminded me of something I had thought about a while ago:
“Should homeowners be allowed to rebuild in flood-prone areas of New Orleans?”
At the time of this post, 72% say no while the remaining (28%) says yes.
When this issue first came up, my initial reaction was “no” because it would legitmize the endless pork spending on folks who continue to build in areas they know are prone to disaster. If they take full responsibility of all damages, then in that case let them rebuild. I still feel that way.
If you think about what I just said, this hard stance should not just be targeted to the people of New Orleans. What about those who continually build in fire-prone areas? Landslide-prone areas? Guess who picks up a good portion of that tab? You guessed it, the USA via FEMA.
Risk doesn’t deter growth in fire-prone areas
Here in California, folks continue to rebuild in areas on the coast they know is prone to landslides.
CATO has an opinion on this whole situation that I agree with completely:
Any time there is a natural disaster FEMA is trotted out as an example of how well government programs work. In reality, by using taxpayer dollars to provide disaster relief and subsidized insurance, FEMA itself encourages Americans to build in disaster-prone areas and makes the rest of us pick up the tab for those risky decisions. In a well-functioning private marketplace, individuals who chose to build houses in flood plains or hurricane zones would bear the cost of the increased risk through higher insurance premiums. FEMA’s activities undermine that process. Americans should not be forced to pay the cost of rebuilding oceanfront summer homes. This $4 billion a year agency should be abolished. (source)
Here’s another article that further explains this postion
With all of that being said, it would be nothing less than a double standard if federal and state government in Louisiana to impose a limitation on where individuals can build. This is a perfect example of how endless spending in government is legitimized.
Related: Nagin rejects limits on rebuilding in New Orleans
