Reblogging for future reference:
With Florence about to hit, it’s time to preemptively explain how the federal government makes damage more likely and why post-hurricane efforts will make future damage more likely.
There are just two principles you need to understand.
- When Washington subsidizes something, you get more of it, and the federal government subsidizes building – and living – in risky areas.
- When Washington provides bailouts, you incentivize risky behavior in the private sector and “learned helplessness” from state and local governments.
If I wanted to be lazy (or to be merciful and spare readers from a lengthy column), this satirical image is probably all that’s necessary to explain the first point. The federal government’s flood insurance program gives people – often the very rich, which galls me – an incentive to build where the risk of flooding and hurricanes is very high.
But let’s look at additional information and…
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