Skip to comments.Hurricane Sandy exposes state catastrophe debts
Posted on 10/31/2012 9:34:42 AM PDT by Rusty0604
Of all accounting frauds state leaders commit to push devastating costs onto future generations, the worst is deluding citizens about the security of so-called catastrophe insurance funds. Hurricane Sandy and a tsunami scare in Hawaii at the same time should be warning enough for governors to start paying the premiums.
All over America, state and local officials are juggling fiscal time bombs as fast as they can, hoping to pocket as much taxpayer money as they can and flee the scene of their fiscal crimes before something triggers detonation.
(Excerpt) Read more at statebudgetsolutions.org ...
I am not so eager to tax Fred, who lives inland, in order that Mary can have her beach house rebuilt when it floods. Government has a role to play, but not in creating moral hazard that only penalizes people who live prudently.
the problem is that governmetn has insinuated itself into being the insurer of last resort, bailing out people who make foolish decisions, such as building on flood plains, or in hurricane zones. of course those tend to be wealthy, white, politically connected folks, and not the minority types in tenements houses in NYC and NJ who are displaced...no governmetn help for them...
And as the article shows, some pension funds are investng in the loser catastrophie bonds to add to the unsustainable fiscal bomb.
(1) Mary, in order to have a certificate of occupancy on the coast, was required to pay both home insurance premiums and flood insurance premiums.
The rebuilding of Mary's house will be subsidized by the private insurance companies she paid premiums to.
(2) Fred, who lives inland, could very well live in a community like Little Ferry, which was walloped almost as hard as Mary who may live in Keyport.
Mary's taxes, like Fred's taxes, will be used to restore public services, clear roads and pay first responders in both communities.
(3) Fred, because he lives inland, may not be legally required to pay flood insurance and may therefore receive more taxpayers' money than Mary does.
(4) When a blizzard hits Fred's community and taxpayers spend millions to clear roads and downed trees in Fred's community, you do not hear the Marys of the coast whining about taxpayer money being spent on "idiots" who live in "the blizzard zone" or "within ten miles of a major river that always overflows" and are "too stupid" to move someplace else.
(5) This kind of rhetoric is pretty transparent and is obvious rent-seeking by Fred.
What soviet did you wander out of?
And tenement homes in NYC? What is this? The 1920s?
ok so nobody lives in lower manhattan? one of the reason that i dislike big government is because the connected win at the loss of normal people. and the party that claims to care about poor and minorities is strangely silent over those displaced in NJ and NYC by the storm. all we hear about is the rich folk who built or bought on the coast....