The Worrisome Statist Response to Katrina
Last week the news media flooded (no pun intended) us with stories about the horrible conditions in New Orleans. This week's flood is a torrent of promises by politicians to take other people's money and give it to the hurricane's victims. Federal government promises now total $60 billion -- about $30,000 per capita among the two million people in the storm zone.
A cornerstone of neoclassic economics is that there is an optimal amount of just about every good, service or activity. Are we surpassing the optimal amount in this case?
I'm especially wary that we are going about this in the wrong way. Human suffering needs to be eased, but are these promises likely to worsen things by rebuilding in a vulnerable place and letting people know that they don't need to take adequate precautions? Are coerced "contributions" from taxpayers beginning to crowd out voluntary charitable activity?
The Good Samaritan parable speaks to our duty to help the helpless. But the Good Samaritan paid for things out of his own pocket and gave his own time. He didn't tell the government to tax the priest and the Levite to force them to pay their fair share.
A cornerstone of neoclassic economics is that there is an optimal amount of just about every good, service or activity. Are we surpassing the optimal amount in this case?
I'm especially wary that we are going about this in the wrong way. Human suffering needs to be eased, but are these promises likely to worsen things by rebuilding in a vulnerable place and letting people know that they don't need to take adequate precautions? Are coerced "contributions" from taxpayers beginning to crowd out voluntary charitable activity?
The Good Samaritan parable speaks to our duty to help the helpless. But the Good Samaritan paid for things out of his own pocket and gave his own time. He didn't tell the government to tax the priest and the Levite to force them to pay their fair share.
Posted by Robert Whaples on
Thursday September 8, 2005 at 2:49pm