Unfinished in New Orleans

Kim Strassel was on Kudlow & Company last night and made several valid points on post Katrina New Orleans. The first is that the major lesson is to distrust government. Wal*Mart had generators, FedEx and UPS were there before USPS -- private enterprise outperformed government at every level.

Sadly, she also reminded viewers of the missed opportunities to harness the private sector in rebuilding. There was much hope on her employer's editorial page of enterprise zones, tax incentives, repeal of Davis-Bacon, and the President's promised urban homestead plan to privatize some government land.

Her employers are just a bit kinder in the lead editorial today (free site).

The post-Katrina spend-fest in Louisiana will be remembered as one of the greatest taxpayer wastes in U.S. history. First came the FEMA $2,000 debit-cards fiasco intended to pay for necessities that were used for things like flat-panel TVs and tattoos. Then came the purchase of thousands of mobile homes that cost as much as $400,000 per family housed; the $200 million for renting the Carnival Cruise Ship; millions more in payments that went for season football tickets, luxury vacation resorts, even divorce lawyers. Federal flood insurance policies surely will encourage many to rebuild in the same flood plains and at the same height as before.

They do document some successes but try not to get too excited out there:

Some of the tax incentives were enacted and have spurred more business investment. And charter schools will serve thousands of the kids still residing in New Orleans this fall. But Congress and Louisiana's pols have ignored most of the promising free-market reforms, opting instead for red tape as usual.

Even Bush 41 suspended Davis Bacon in the Andrew cleanup. The Democrats are in full dudgeon that only $125 Billion has been allocated. At the risk of piling on, I am disgusted that no conservative leadership or political courage was shown. "Just shovel money so we look compassionate" is not a Republican value.

Posted by jk at August 29, 2006 10:47 AM