4. What (if any) government policy should be considered to assist the areas affected by Ike? Do you feel as if the government is promoting moral hazard by providing hurricane assistance to those who built along these shores? Or do you feel as if hurricanes are low probability events that no one can truly be prepared for?
There have been reports in the news media about the abuse and opportunistic exploitation of hurricane assistance provided after Ike struck. The U.S. Department of Housing and Urban Development set aside a substantial sum of money toward this end. In collaboration with FEMA, the government agency had garnered $110 million for this project. As the State Coordinating Officer for Texas, Joan Haun noted, “housing is our first priority… the most important thing is helping people devastated by Ike have a safe place to live while they plan their recovery and get their lives back on track. Safe housing during this rebuilding period is essential” (www.fema.gov, 2008). Under this program houses for rent were provided for the displaced people at nominal rates for a temporary period of time. But recent reports suggest that some people have taken advantage of the subsidy and are unreasonably extending their stay. Reports such as this, as well as the regularity with which hurricanes strike the Southeastern coast, should prompt the governing agencies to rethink their approach. Seen in this context, it is prudent to think of preventative measures as opposed to disaster management approaches. For example, a preventative program that purports to permanently move people to safer locales (possibly through providing housing incentives) would prove to be beneficial in the long run. Such an initiative would not only reduce human casualties in the future, but also reduce wastage of tax-payer money presently devoted to relief efforts and temporary shelters.
References:
By John W. Schoen, Hurricane Ike brings spike in gas prices: Storm expected to strike the heart of U.S. oil refining capacity, retrieved from msnbc.com <www.msnbc.msn.com/id/26676331>
Texas Ike Update: $110 Million In Disaster Assistance Approved, report released on October 3, 2008, retrieved from <http://www.fema.gov/news/newsrelease.fema?id=46060>
Hurricane Ike could be worse than Katrina for US, The Times, September 13, 2008, retrieved from <http://www.timesonline.co.uk/tol/news/world/article4742952.ece>