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Bailing and Bailing, at Taxpayers Expense

This story at the National Center for Policy Analysis, which is based on a Wall Street Journal editorial, provides a perfect example of why capitalism and market forces are superior to government. When federal flood insurance, though, will pay to repair your home not once, but 11 times, why not continue living in New Orleans’s Jefferson Parish. Or in Houston where one home has been repaired 16 times for a total of $807,000, seven times what it's worth?

NCPA writes, “Ideally Congress would abolish the NFIP, and homeowners would purchase flood insurance in the private market or accept the risks of building, says the Journal. But Congress has a history of bailing out homeowners from natural disasters, so abolishing the program would eliminate premium collections -- arguably leaving taxpayers worse off. Half of the New Orleans homeowners who will receive flood assistance from Katrina never bothered to pay any flood-insurance premiums. But that isn't stopping Congress from paying them to rebuild. Why does anyone pay premiums?”

Talk about taking personal responsibility? Better yet, American taxpayers should remind their Congressmen of Col. Davy Crockett's “Not Yours to Give” speech,, posted at Patriot Post, which he made in the U.S. House of Representatives when he served in the early 1800’s.

UPDATE 6/3/06. Further evidence that as long as Uncle Sugar is willing to subsidize building in hurricane-prone areas, things will be built. In this case, the state of North Carolina is encouraging development of one of the largest seaports on the East Coast. Sheesh!