Wednesday, September 07, 2005

Throwing cash at Katrina victims

Rambix fully supports private, corporate, and charitable efforts to provide financial support for the victims of disasters in general, and Hurricane Katrina in particular. Rambix does not, however, support the US government giving $2000 debit cards to "families displaced by Hurricane Katrina":

The Federal Emergency Management Agency is administering the program. FEMA officials said the program is aimed at those most in need, so not all families that fled their homes will be eligible.
Obvious problems emerge. For example, how does the government determine who is "most in need", especially since few will have documentation? What is the check on fraud? Is it a "no-strings attached", i.e. no conditions? Will the cards be used to buy booze, cigarettes, and other non-essentials?

The idea is for one card to be issued to each household. If a million people have been displaced, that might equal roughly 300,000 households. What's 2000 times 300,000? A lot of zeros! Are they kidding?

It's unclear how much the debit card program will cost the government, but it could run into the hundreds of millions of dollars since hundreds of thousands of people have been displaced.

Alaska Gov. Frank Murkowski, a Republican, said he had concerns about the potential for abuse.

"That's a lot of money. The question is how do you separate the needy from those who just want a $2,000 handout," he said.
It takes a Republican to ask the salient questions. Thanks, Frank. Here's the answer to the potential fraud question:

As a safeguard against fraud, FEMA will use aerial photographs of devastated areas to verify that the refugees were, indeed, forced from their homes in cases where they cannot provide documents to prove their losses or identities.
This is unbelievable. What kind of a circus are they running? There are hundreds of millions of dollars pouring in from all over the world in private donations, and the US government has the audacity to give hundreds of millions of tax dollars in unaccountable cash to basically anyone who asks?

Let's go to New Orleans!