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Prometheus 6

All respect and no restraint

Not filed under economics, because that has nothing to do with Bush's response

Limitation of note:

The administration has been planning to give assistance almost exclusively through FEMA, which has the authority to distribute $26,200 per household in cash, rental assistance and home repairs. If even half of families displaced by the storm collect, the agency could end up paying out tens of billions of dollars. But once the amounts were paid, that would be the end of the government's obligation.

In this case, they should call this amount a relocation allowance. Folks are starting totally from scratch and they don't have jobs so mere subsistence will burn off most of this. This needs an institutional response not merely a financial one. Because by all accounts, whether because of global warming or merely where we are in some grand weather cycle, you can count on seeing more storms like this over then next few years.

If we have to cobble together a response for each storm, you're going to see a lot of unnecessary misery...and the start of a northward migration.

Anyway... 

Limiting Government's Role
Bush favors one-time fixes over boosting existing programs to help Katrina victims.
By Peter G. Gosselin and Ricardo Alonso-Zaldivar
Times Staff Writers
September 23, 2005

WASHINGTON — Two days after Hurricane Katrina slammed into the Gulf Coast, the Department of Housing and Urban Development announced plans to issue emergency vouchers aimed at helping poor storm victims find new housing quickly by covering as much as $10,000 of their rent.

But the department suddenly backed away from the idea after White House aides met with senior HUD officials. Although emergency vouchers had been successfully used after the 1994 Northridge earthquake, the administration focused instead on a plan for government-built trailer parks, an approach that even many Republicans say would concentrate poverty in the very fashion the government has long sought to avoid.

A similar struggle has occurred over how to provide healthcare to storm victims. White House officials are quietly working to derail a proposal by leading Republican and Democratic senators to temporarily expand Medicaid. Instead, the administration is pushing a narrower plan that would not commit the government to covering certain groups of evacuees.

As President Bush tackles the monumental task of easing the social problems wrought by Katrina, he is proving deeply reluctant to use some of the big-government tools at his disposal, apparently out of fear of permanently enlarging programs that he opposes or has sought to cut.

Instead of depending on long-running programs for such services as housing and healthcare, the president has generally tried to create new, one-shot efforts that the administration apparently hopes will more easily disappear after the crisis passes. That has meant relying on the Federal Emergency Management Agency, which has run virtually all of the recovery effort.

"FEMA can help fill some immediate needs after a disaster, like giving grants to help people repair their roofs or pay for temporary housing," said John P. Sucich, a former senior FEMA official who oversaw the recovery from the 1989 Loma Prieta earthquake. "But it is not the agency to turn to to ensure the kinds of continuing help that families need to begin putting their lives back together.

"That's what the rest of government is for," Sucich said.

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