Hurricanes. Fearful unstoppable hurricanes. Living in Colorado, I have certain limitations. No beach access. No Disney World. On the "plus" side, no hurricanes. And therefore no multi-billion dollar federal bail-out every 2 months every summer.
Not so for for Florida. The state once called "America's Wang" by Homer Simpson is indeed sticking it to us. They are making us pay for their choice to live in an area likely to be hit by hurricanes. Like the Coloradoans surprised to find at their mountain/Forrest homes, their dogs are eaten by mountain
lions, and their houses burned by forrest
fires. These people are externalizing the cost of their lifestyle.
Federal Flood insurance was designed by an economist, and as originally imagined, as a way of putting the externalized costs of living in a flood plane back on the property owner. Since we will inevitably have to dole out money when we see houses afloatin' down the Mississippi, we have at least gotten that cost up front. Price signals are expected to be better as well. The insurance tells people "this house will be flooded" and more importantly "this will be expensive". More importantly because the foolhardy can ignore that former, but the later is an absolute, built into the price of ownership. So when the national guard spends a day getting your cow off of your barn, the rest of us aren't stiffed with the bill.
How about some hurricane/forrest fire/wildlife attack insurance so we can stop subsidizing people's bad decisions?
-paul 13:04 EST |