Wednesday, September 07, 2005

The Financial and Political Aspects of Disaster Relief

Disasters like the tsunami and Hurricane Katrina routinely demonstrate the best of human nature, and unfortunately, the worst as well. The unbelievable charity of average people, the heroism of the man on the street, and the scope of private response to natural catastrophes boggles the mind, giving everyone hope in the face of calamity. While private efforts are lauded, public and governmental efforts are vilified and, out of necessity, limited.

Even before the winds and rains of Katrina had passed from the Gulf Coast, the finger-pointing and blame gaming began. Those on the liberal left blamed the Bush Administration for its insensitivity and lack of response. Those on the conservative right blame Louisiana Governor Kathleen Blanco and New Orleans Mayor Ray Nagin for failing to initiate their own disaster mitigation and relief efforts. The truth, as it is with most matters, likely falls somewhere in between. The sheer magnitude of the event practically guarantees enough blame to go around—and then some.

Despite the cries of some commentators and politicians on both sides of the aisle, every major event, every disaster and every issue has political overtones and undercurrents. After all, the inescapable fact remains that politics will play a role in the evaluation of the Hurricane Katrina response. But while government efforts focus now on aiding victims and clean-up and rebuilding operations, other factors begin to creep into the picture; factors that will carry even more political consequences for the future.

Hundreds of thousands of victims are receiving substantial governmental aid. In fact, rumors are circulating of evacuees commenting that they have never had it so good, with food and shelter being provided to them at no cost. Some of these evacuees are reportedly considering not giving up their now cushy (relatively so) existence on the governmental dole. To be sure, these victims need immediate help, but at what point do we as a government and a society say, “We have helped you enough. You need to help yourself now.”

In many ways, the generosity of the American government will be tested in the months to come. The aid being offered in this case is not short term. It is not a matter of a few days or weeks. Rather government aid and shelter may continue for months for many people. As the rebuilding efforts continue, the government will have to cut off aid to evacuees, as cold as it sounds, it must be done. But here comes the rub, in many cases governmental aid to citizens is viewed as a right and a property interest that cannot be denied or removed without due process of law—meaning a hearing held to determine if the person no longer is entitled to the aid. This question is not without its potential political fallout.

The simple racial make-up of New Orleans, roughly two-thirds black, lends itself to a race baiting complaint that by cutting off aid at some point in the future, the government (read the Bush Administration) is callously denying aid to poor blacks. Further, if aid is cut off, whether done so summarily or not, the Left will claim that aid was slashed to pay for the war in Iraq or to demean the citizens of New Orleans or any number of ludicrous charges. In truth, governmental aid is not and should not be infinite.

Complicating matters will be the generosity of the states. States like Texas, Arkansas and others, who have taken in thousands of evacuees, providing access to schools, hospitals, and other services, can ill-afford to continue to provide such aid indefinitely. At some point, there will come a time when those states will ask for assistance or even reimbursement from the federal government. How should the federal government respond then? Deny the request? Pay the request? Congressional action may be necessary, but the choice will be hard.

Hurricane Katrina’s effects obviously extend beyond the floodwaters or New Orleans or the devastation of Biloxi. The economic impact is being felt in immediate terms and discussed for the long term. But when events of this magnitude occur, the question remains—what are the practical limits on governmental aid? How do we provide that aid without bankrupting the state and federal governments? This is the proper political question to ask, not who is to blame. The answer can only come from ourselves.

Cross-Posted at Watchblog and R.D.I.O.P.

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