Disaster-Prone Regions

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Should the Fed government offer fewer subsidies to slow growth in disaster-prone regions?

Yes
22
79%
No
6
21%
 
Total votes: 28

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Jahbulon
Posts: 3901
Joined: Wed Nov 17, 2010 1:22 pm

Disaster-Prone Regions

Post by Jahbulon »

Some economist feel that one of the greatest threats to America's economic future is the "overbuilding" in fault zones, floodplains, and coastal areas.

The populations Florida and California continue to grow at a rapid pace. California is well-known for its earthquake susceptibility, and Florida is in a category unto itself for hurricane damage. The government expects 75% of the entire country to live in coastal counties in 20 years. While coastal regions are aesthetically pleasing, they are especially at risk for major property damage due to storms and flooding.

Property damage from hurricanes alone in 2004 totaled more than $22 billion. Damage projections for a major hurricane or earthquake in New York City (and one or the other is bound to happen) could be from $20 to $45 billion in a single event, just in that city.

The rush to the coasts is already on, and as the nation's median age continues to rise, a larger share of the population is likely to move to warm, sunny locations. The more those populations increase, the higher land and property prices will rise, compounding the damage likely from natural disasters.

Some argue that the Federal government can reduce the distortions it causes to the natural market by offering fewer subsidies for construction and insurance in disaster-prone regions. The argument goes that as people learn to bear more of their own costs for these hazards, they are less likely to move there without the necessary understanding of and preparation for the risks involved. Government can also offer less implicit and explicit support for further population concentration (road funding, for instance). Simultaneously, regions outside these high-risk zones need to take it upon themselves to promote the advantages they have in the absence of these risks. Places like Minnesota and Wisconsin may not have as much sunshine as Florida, but they also don't sit in the cross hairs of Category 4 hurricanes.

Poll Question: Should the Federal government offer fewer subsidies for construction and insurance in disaster-prone regions?

Yes
No

crondanet5
Posts: 4324
Joined: Tue Aug 19, 2008 8:51 pm

Re: Disaster-Prone Regions

Post by crondanet5 »

I have argued in the past that there has to be a stopping point for using new housing starts as a measure of US economic growth. Or else eventually we put houses in Yosemite and on top of Niagara Falls! It's time to drop it from the charts.

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MakeMe$$$$
Posts: 772
Joined: Tue Aug 23, 2011 10:12 pm

Re: Disaster-Prone Regions

Post by MakeMe$$$$ »

Interesting question.

A little bit of tongue and cheek but...Job Killer? Kinda, maybe?

What does reduction of subsidies look like. Does Walt Disney, Epcot Center and all the tourism industry in FL (or other "higher risk" areas) have to begin raising prices to afford more protection through private or self-insurance to compensate for lower fed subsidies? Do industries that located in places people wanted to live have to relocate for similar reasons?

I don't have an answer. I just have more questions on the breadth and depth of this proposal and the impact it may create.
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.

meddian
Posts: 32
Joined: Thu Jul 21, 2011 9:24 am

Re: Disaster-Prone Regions

Post by meddian »

That's a question for each STATE not the friggin Government--we are not Russia.

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kucheka
Posts: 158
Joined: Mon Dec 20, 2010 10:22 am

Re: Disaster-Prone Regions

Post by kucheka »

That's a question for each STATE not the friggin Government--we are not Russia.

States have governments. Why would states be better suited to answer this question? Would states still be eligible for federal disaster relief?

I don't think you can answer this poll intelligently w/out having a long discussion about the nature of current "subsidies" that encourage settlement in disaster-prone areas (my guess is that this article is alluding to rights to FEMA disaster relief), or what disincentivizing would actually entail (cut road funding to coastal areas?). A version of this conversation took place after Katrina, when many stupid pundits claimed that an entire city should have been smart enough to leave their homes and move somewhere else.

How about this for a start: Congress joins virtually every national academy of sciences and 98% of climate scientists in acknowledging that hazards are going to get worse absent serious energy reform and conservation investments.

Image

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MakeMe$$$$
Posts: 772
Joined: Tue Aug 23, 2011 10:12 pm

Re: Disaster-Prone Regions

Post by MakeMe$$$$ »

meddian wrote:That's a question for each STATE not the friggin Government--we are not Russia.


OH BOY! And we wonder why we can't have civil conversations about issues.

How does this equate to Russian government? (Did you really mean the defunct USSR?) Pooling of resources is not communism in the Russian sense. I can agree that states should start thinking about how to support more of their own needs but should we as Americans stand by while Floridians get hammered by a Hurricane? How about Texas and massive drought? Should MO be penalized for not planning on the errant path of a tornado that destroyed much of Joplin?

Thanks for your participation...just wish I could give you points for substance.
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.

meddian
Posts: 32
Joined: Thu Jul 21, 2011 9:24 am

Re: Disaster-Prone Regions

Post by meddian »

I believe you call that leadership and contingency planning? LOL. If you live in a state who is prone to mud slides, hurricanes, wouldn't you plan for it???? No we shouldn't just stand by--I pay taxes. Ever been or lived in a foreign country? Its the leadership dispersing the money that I don't trust. And thank you for letting me add me 2 cents...

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