Skip to comments.THE BIG EASY'S BILLION DOLLAR BOONDOGGLE--federal relief $$$ divvied=$425,000 per person
Posted on 08/30/2007 8:41:10 AM PDT by InvisibleChurch
Federal Spending & Budget Issues August 30, 2007
THE BIG EASY'S BILLION DOLLAR BOONDOGGLE The idea of using federal money to rebuild cities is the quintessential liberal vision. And given the dreadful results in New Orleans, we can say that the government's billions spent so far represents the quintessential failure of that liberal vision, says Lawrence Kudlow, host of CNBC's Kudlow & Company.
So far, the federal government has spent $127 billion (including tax relief) on post-Katrina New Orleans. The entire gross domestic product (GDP) of the state of Louisiana is only $141 billion, according to the U.S. Department of Commerce. If the relief money had been divvied up among residents, the $127 billion would come to $425,000 per person. So the cash spent there nearly matches the entire state's GDP, says Kudlow. And to make matters worse, by all accounts New Orleans isn't even fixed. Further, according to an article by Nicole Gelinas at the Manhattan Institute:
New Orleans has earned the distinct honor of becoming the murder capital of the world. The murder rate is 40 percent higher than before Katrina and twice as high as other dangerous cities like Detroit, Newark, N.J., and Washington, D.C. Right from the start, New Orleans should have been turned into a tax-free enterprise zone, says Kudlow. No income taxes, no corporate taxes, no capital-gains taxes. The only tax would have been a sales tax paid on direct transactions. A tax-free New Orleans would have attracted tens of billions of dollars in business and real-estate investment. This in turn would have helped rebuild the cities, schools and hospitals. Private-sector entrepreneurs would have succeeded where big-government bureaucrats and regulators have so abysmally failed.
Source: Lawrence Kudlow, "The Big Easy's Billion Dollar Boondoggle," Townhall.com, August 30, 2007.
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NOLA is living proof that more tax money is not the answer................
Should be an eye-opener. But, it’s beyond imagination so will be ignored.
Let the land that once was New Orleans return to the delta. If a New Orleans “has” to be built, take it 100 miles inland. This city does not need to be rebuilt.
If I were a governor, I’d be hoping such a tragedy would happen to my state.
$425,000 per person. I’m in the wrong business when simply living there could net that. Without even working.
Bingo.....fill in the hole or blast the levy's.
NOLA blew their only chance. Now it's just a black hole for our tax money. Bush needs to declare Martial Law and open that place up to the free-enterprse system. Time is a wasting.
Does that include the $2000 they got for beer runs?
Yesterday, a FOX news reporter in NO was whining that after two years, not only was there still debris in people's yards but THEIR LAWNS HADN'T BEEN MOWED.
This is a two-fer for the rats. They get to participate in a huge federal-largess boondoggle, and it’s so big that it might actually help weaken the overall economy. Both those outcomes are dear to the heart of rats everywhere.
The horror. The horror.
The money that has been poured down the sinkhole of NOLA is simply staggering, and it continues to suck more and more money from the Feds. Stop the insanity!
When government isn't working domestically, economically, a surge of one American economist works wonders against anti-freedom, anti-freemarket forces.
Implement the new plan.
i always thought that when an area flooded that the libs delighted in instantly turning it onto a ‘natural wetlands’ ... GW should have done that with NO
Just wait until we get the bill for those made ill by the “toxic soup!”
No different then Edwards plan for Poverty... Federal Tax $$’s to be paid generously to the poor, lazy and crazy...So all you rich folk get ready to pay for those that won’t, don’t, and can’t work for their own money...
Re-distribution of wealth socialist dream agenda... NOLA is but one example...
Green Day looked really good with that 360 flat panel monitor system.
Looked good.... Sounded like the name of their first major album.
2 years later the people are still complaining they didn’t get enough help. Heard one on the radio the other day. Sad.
If you people believe these figures, you’re out of your minds.
“Im in the wrong business when simply living there could net that.”
IF you believe that I have a piece of swamp land for sale. It’s kind on like the rumor that there are family farmers that need help from Govt. subsidies.
I would probably say between $5 - $10 billion was wasted on NOLA.
I'm sure in some areas of NO that isn't any different then it was pre-Katrina.
Kindly remember that the "aid" is spread over at least three states, that it includes billions in claims insured by the National Flood Insurance Program -- for which we pay premiums -- and that the overwhelming majority of the aid received in NOLA should be counted as reparations for a man-made disaster: the failure of flood control, structures whose design and construction were a Federal responsibility.
Then it was wasted by the same Federal govt. that created not only this disaster but also the sociologically disastrous welfare underclass that embarrassed us on national TV.
Not all of New Orleans has a brain deficit as commonly believed. New Orleans is a port city. Commerce is shipped up the Mississippi to benefit the rest of the states. Put New Orleans 100 miles inland and you have no port or transport of goods. The “city” you are referring to made out OK. It was the lower ninth ward they keep talking about and New Orleans East and Lake shore drive that were devastated. Money misspent? Absolutely. We have a reputation for that kind of thing. But, not all of us are of that ilk. I understand how the country feels, but I made out just fine with Katrina and didn't take the government to the cleaners in the process. Just my two cents.
“NOLA is living proof that more tax money is not the answer................”
And a life-example of how efficient government-controlled socialized
medicine will be.
So they couldhave offered every person $100,000 to buy a house ANYWHERE they wanted, and still come out ahead?
I am PO’d on so many levels with this...
Why so much on ONE city?
Yesterday, a FOX news reporter in NO was whining that after two years, not only was there still debris in people’s yards but THEIR LAWNS HADN’T BEEN MOWED.
I believe I saw that broadcast. They interviewed a woman from the lower ninth ward and she was saying that nothing was done in her area - everything was done in the French Quarter. The French Quarter didn’t have a scratch from Katrina the only thing it suffered was lack of business. The press buys all this garbarge from the same people all the time. Many residents lost or had damage to their homes in the surrounding areas (Metairie, Kenner). Those areas are up and running now and most of the trailers are gone. You can barely see damage in our areas.
Exactly. The best thing ever to happen to N.O.
Rebuild the “Port of New Orleans” where it stands. Moving thousands of poor residents back into the flood area below sea level is lunacy!
Thank you. I once roomed with a gal from Lake Charles some years ago. She loved her hometown which kept me wondering why she moved to the District of Columbia where I worked. We didn’t keep in touch but post-Katrina, I wonder about her and how Lake Charles turned out.
That bastard Bush! He won't let the colored folks own lawn mowers! (Lessing they use them on da Man's lawn.)
new orleans has been built 100 miles inland. it’s called “Baton Rouge”
Just after the hurricane, the feds could have announced that they were giving each resident of the disaster area a check for $250,000 to cover their house and expenses.
We would all probably have been outraged at the time.
We could not have imagined how much cheaper that would have been.
That's what they did after the devastating hurricane that hit Galveston a hundred years ago (still holds the record as the United States' deadliest natural disaster.) = moved the port facilities up-river many miles inland to Houston
Nearly 113 BILLION tax payers dollars have disappeared into the rat-hole of what was, even PRE-Katrina, the most corrupt city of the nation - and where this money went is neither visible nor accounted for by the same officials that ran the city before,,,
We have the right to demand accountability -
and the feasibility of rebuilding in an area so far below sea level, on the edge of the sea, is beyond ludicrous. Rebuild on the high ground - move the rest inland. Galveston was smart enough to - a hundred years ago -
Let's hound the media and the politicians to get an accounting of where 127 BILLION dollars to the "Chocolate City" have gone!
For one thing, turning a light on that will also turn a light on the criminal negligence of actions taken and NOT taken by Blanco and Nagin - some sheeple might even get a clue that it was not Bush and FEMA that were responsible for those first days of chaos...
2 years later the people are still complaining they didnt get enough help. Heard one on the radio the other day. Sad.
The people of NOLA, no matter where they are living now, have worn out the sympathy card. They were generally worthless before Katrina and they have not changed.
It’s gotta be hard to mow water.
Rebuild the Port of New Orleans where it stands. Moving thousands of poor residents back into the flood area below sea level is lunacy!
I agree with you. No understands that the average person from the Greater New Orleans area doen’t want to rebuild the poverty area. The Democrats want the people to come back so they can control the “chocolate” city once again. Also, we had a large Vietnamese population including a church of 10,000 in New Orleans East. They were mostly displaced never to return. Very hardworking people trying to better themselves yet you never see stories about them. Believe me, nobody wants generational poverty and murder in their back yards.
Lake Charles is on the other side of the state near the Texas border and was beat up pretty badly from Rita but we are doing just fine! It’s growing like gangbusters here.
What specific dispute do you have with the numbers?
That's true, but we have to remember that it was George Bush that led the charge for rebuilding New Orleans with federal fund.
For starters, the fact that there isn't $425,000 in my bank account.
The CBO has documented a figure south of $100B, as of August 1. That sum is spread over 3 states. A big chunk of it is claims on the national flood insurance program, for which policyholders pay premiums (nice of the govt. to count that). Aditionally, since the majority of the disaster in NOLA was caused by the Feds in the first place, it seems fair that they should pay to fix the consequences of their screw-ups.
Coastal Louisiana annually puts $10 Billion into the Federal treasury from oil & gas royalties, alone. Further, for years the State of Louisiana has been owed payment of a portion of those royalties to address our vanishing coastline and wetlands (caused by the drilling which produces the royalties), and which has been our protection against storms); but neither the Clinton nor Bush administrations signed off on the bill since Congress passed the law in the mid-1990s. When our senators and representatives in DC have requested funds for rebuilding infrastructure, hospitals and schools, they have been short-changed. Apart from the crook Jefferson, we have a junior delegation without much clout, and the funds are going to rebuild Iraq and to pet projects of politicians elsewhere.
This is a man-made disaster: the Federal government created the welfare-dependent underclass. The Federal Government designed and built shoddy flood control structures. The levees were built during the Johnson administration and maintained through Bush 2. Both parties have given us the finger over the decades, but it is especially galling to write a huge check to the IRS in April and see most of it go elsewhere, rather than to our own community; especially since the Feds caused this mess.
Compounding the problem are the insurance companies who are fighting the payout of claims tooth and nail. Two years after the storm, my parents have not seen a dime of the funds supposedly allocated to reimburse homeowners for the Federal Flood (my father died in February). My wife's parents are not back in their house; they have received -0- from their insurance company. Finally, they had to file suit. This is a common situation. The insurance companies are now charging staggering premiums and making record profits. This has stalled the housing industry, which, in turn, adversely affects the local economy, forcing our friends and neighbors to move away. Such is the mendacity and greed of our way of life.
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