FEMA

Tyler Cowan probably has the best Post of Today, discussing methods to better Disaster Response performance. The entire subject needs to be explored objectively. Mandatory Risk insurance will be an added burden on the Poor, driving them from currently affordable Housing, while giving Insurers carte blanche to set unacceptable rates. The problem is not with the principle of FEMA, but with the organization of it.

I would turn all of FEMA into a loan program. How? By turning FEMA into a modified Banking and Equipment Service Center. Congress would establish the FEMA loan system, coupled with an automatic Federally-imposed Income Surtax upon any State which owed FEMA for extended Loans or Rental of FEMA equipment (said Equipment to be loaned with or without Skilled Operators, but States would have to prove presence of Skilled Labor to obtain the cheaper Rental). What would this do?

The States would be in charge of the Disaster relief process, immediately responsive to the needs of Home and Business owners in the affected areas. The entire State would find it advantageous to acquire a Group Risk Insurance policy, to help defray the Cost of the special Disaster Federal Surtax to repay FEMA loans. The Poor would be assured of necessary maintenance for their Homes under Disaster conditions, and Small Business in affected areas could avoid destruction from lack of sufficient funds for Reconstruction.
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Like Jeff Cornwall, I like this Columbus Dispatch article about Shippers moving into the Small Business supply mode. Will such practices actually add much to the GDP? The idea is humorous, but carries a real hedge against Recessive conditions. The more business out there, which is providing real Return to their Owners, the greater and more sustained is the Consumer pool. Multiplex small business infrastructure holds relative premium status for Market continuance. lgl