Catastrophe Setup, Redux
I have previously blogged about the nefarious — but unintended — consequences of disaster relief. This seed has germinated into a longer piece about flood relief, which Missourinet has covered (link via Combest).
The idea is simple. By bailing out the victims of flood relief, the government unintentionally encourages people to move into flood-prone areas, leading to more flood damage in the long term.
You touched on an area that has been around for decades, especially in the last 30 years. The taxpayers turn their head, as a few gain from taxpayer’s money.
It is the same with buying and building next to an inter-state highway.
The developer (and property owner) buys low, then has MoDot build a noise wall. The property value goes up at the taxpayer’s expense.
Years ago, people would think you were insane to build a nice home next to a river, or interstate highway. Now it is a way to make money.
Comment by William Barker — July 30, 2008 @ 12:57 p.m.