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State and Local Government / Transparency

Catastrophe Setup, Redux

By Matt Simpson on Jul 30, 2008

I have previously blogged about the nefarious — but unintended — consequences of disaster relief. This seed has germinated into a longer piece about flood relief, which Missourinet has covered (link via Combest).

The idea is simple. By bailing out the victims of flood relief, the government unintentionally encourages people to move into flood-prone areas, leading to more flood damage in the long term.

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Matt Simpson

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