Katrina Fraud Swamps System

CATO Daily Dispatch ^ | 7/6/2007 | Laura Osio, editor

[bruinbirdman]

"Federal agents investigating widespread fraud after the Gulf Coast hurricanes in 2005 are sifting through more than 11,000 potential cases, a backlog that could take years to resolve," reports USA Today. "Authorities have fielded so many reports of people cheating aid programs, swindling contracts and scamming charities after the hurricanes that Homeland Security inspectors, who typically police disaster aid scams, have been 'swamped,' says David Dugas, the U.S. attorney in Baton Rouge."

In "Federal Aid to the States: Historical Cause of Government Growth and Bureaucracy," Chris Edwards, Cato's director of tax policy studies, writes: "The theory behind aid to the states is that federal policymakers can design and operate programs in the national interest to efficiently solve local problems. In practice, most federal politicians are not inclined to pursue broad, national goals; they are consumed by the competitive scramble to secure subsidies for their states. At the same time, federal aid stimulates overspending by the states, requires large bureaucracies to administer, and comes with a web of complex regulations that limit state flexibility. At all levels of the aid system, the focus is on spending and regulations, not on delivering quality services. And by involving all levels of government in just about every policy area, the aid system creates a lack of accountability. When every government is responsible for an activity, no government is responsible, as was evident in the aftermath of Hurricane Katrina."

In "Catastrophe in Big Easy Demonstrates Big Government's Failure," David Boaz, Cato Institute's executive vice president of the Cato Institute, writes: "You've got to hand it to the advocates of big government. They're never embarrassed by the failures of government. On the contrary, the state's every malfunction is declared a reason to give government more money and more power. Take Hurricane Katrina, a colossal failure of government at every level--federal, state, and local.

"Let's look at the facts. Government failed to plan. Government spent $50 billion a year on homeland security without, apparently, preparing itself to deal with a widely predicted natural disaster. Government was sluggish in responding to the disaster. Government kept individuals, businesses, and charities from responding as quickly as they wanted. And at the deepest level, government so destroyed wealth and self-reliance in the people of New Orleans that they were unable to fend for themselves in a crisis. And some people conclude that we have too little government?"

[bruinbirdman]

"big government. They're never embarrassed by the failures of government. On the contrary, the state's every malfunction is declared a reason to give government more money and more power."

Sounds like the education system, among others.

yitbos

[BenLurkin]

"You've got to hand it to the advocates of big government. They're never embarrassed by the failures of government. On the contrary, the state's every malfunction is declared a reason to give government more money and more power."

[stephenjohnbanker]

Fire em all!!Ben Lurkin for Prez!!

[stephenjohnbanker]

Sorry Ben.........I wouldn’t do that to you : )

[bruinbirdman]

I could go for makin' New Orleans a lurker in the grand scheme of things. Never seen, never heard, just below the swamp water.

yitbos

[Fido969]

More good news from a Democrat stronghold.

If Nancy Pelosi gets her way, the whole country will be like this.

[stephenjohnbanker]

: )

[AbeKrieger]

I am sorry but my legislated sympathy for the oppressed minority far outstrips the responsibility of the criminal for commission of fraud. Anyone who accuses these “people” of criminal acts is a racist hater, regardless of what it was they did with Other People’s Property.

[mikeybaby]

This fiasco is somewhat more damaging than it would first appear.
My sister is the GM of an RV/travel trailer dealership.
During the aftermath of Katrina, she found it impossible to hire crews to “spot” (ie., place) trailers purchased by her customers, as all the crews (typically 3-4 guys and a HD pickup) were making $5-8000 per week taking trailers to Arkansas
Not only did the Gubmint waste obscene amounts of taxpayer dollars, they also screwed people trying to engage in a productive business.
A twofer, I guess.

[kittymyrib]

Just wait till Medicare and Social Security fail...and they will. The Federal Government is bankrupt, and it will become very evident in the lifetime of the next generation. Politicians made promises the federal government can’t keep, but hey, it kept them in office, and that’s all that matters.
The founding fathers should have been wise enough to include a proviso that any debt incurred by politicians, except for national defense, should be paid off by those politicians before they leave office or they would be personally liable for them. That would have solved the problem nicely.

[iopscusa]

CATO $ QOUTE:
“Let’s look at the facts. Government failed to plan. Government spent $50 billion a year on homeland security without, apparently, preparing itself to deal with a widely predicted natural disaster. Government was sluggish in responding to the disaster. Government kept individuals, businesses, and charities from responding as quickly as they wanted. And at the deepest level, government so destroyed wealth and self-reliance in the people of New Orleans that they were unable to fend for themselves in a crisis. And some people conclude that we have too little government?”

[darth]

I had a chemical sales rep from Louisiana drop by a few weeks ago. He BRAGGED about how corrupt their government and people are and have always been. Needless to say, I would not trust him enough to buy from him.

[bruinbirdman]

NO is a city and a parish of corruption all rolled within state corruption.

For instance, here in Clark County, NV, the county has an assessor. When I lived in New Orleans, the city had 12 assessors.

yitbos