A Stitch in Haste

A Stitch in Time Saves Nine...But Haste Makes Waste

A collection of real-world libertarian, individualist and laissez-faire rants on law, economics, politics, culture and other current events
by an average, everyday lawyer & investment banker and part-time pop scholar.

"Priceless" Now Has a Price
(Why aren't you reading this at the new website?)

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or, "What's in Your Wallet?"
The federal government plans to begin doling out debit cards worth $2,000 each to adult victims of Hurricane Katrina, The Associated Press has learned.
...
The unprecedented cash card program initially will benefit stranded people who have been moved to major rescue centers such as the Houston Astrodome.

"They are going to start issuing debit cards, $2,000 per adult, today (Wednesday) at the Astrodome," said Kathy Walt, a spokeswoman for Texas Gov. Rick Perry.
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It's unclear how much the debit card program will cost the government, but it's likely to run into the hundreds of millions of dollars since hundreds of thousands of people have been displaced.
I think this sets a dangerous precedent, for several reasons:

--If Katrina victims were able to evacuate, then you'd think they were able to evacuate with their wallets. How exactly is money the issue here? If they need food, water, clothing, diapers, etc., because those items are unavailable (i.e., at any price), then shouldn't we be providing those supplies rather than money? Did the flood somehow waterlog everybody's currency?

--How long do you think it will be before we see reports of people using their debit cards to buy beer, or cigarettes, or trading them for illegal drugs?

--Of course Katrina was a unique disaster, but what criteria will be used in the future for a direct government-run cash handout to be established? "Oh sorry, only 10,000 homeless from your flood, no debit cards for you." "Sorry, debit cards require a 7.0 on the Richter scale and you only had a 6.9." "Giant meteor fell on your house — so what?"

--Why should cash handouts be limited to natural disasters? If a crazed arsonist burns down my house and only my house, then I'm displaced too, so should I get a $2,000 debit card?

If there's some logistical reason why a cash handout is more efficient than direct aid, then let's hear it. But it certainly goes against the tradition of providing those in need of relief with, um, relief rather than a windfall.

POST SCRIPT: What is doesn't go against, on the other hand, is the new tax-and spend Republican fiscal policy of "too much is never enough." Go figure.

UPDATE #1: JunkYardBlog --
But I can see how the race and povery [sic] pimps may play the cash cards. The cards are going out to adults, one per, in each family. So a pair of yuppie evacuees with zero kids will get 2 cards, value $4k. A single mom with four minor kids will get 1 card, value $2k.
I'm pretty sure I don't qualify as a "race and poverty pimp," but I also think that discrepancy is outrageous. Kids are people too.

UPDATE #2: The program has been scrapped.
Posted by KipEsquire on 7 September 2005


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