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Tuesday, August 30, 2005

Using Disaster Funding To Rail Against Privatization

Oliver Willis is using the fact that government disaster money is flowing into the Louisiana area to argue against privatization.

Here's the gist.

... the savior of Mississippi and Louisiana will not be some privatized entity, some benevolent source of private funding. When Mississippi and Louisiana recover - and they will - they will have the much derided federal government to thank. It will be money from the federal government, along with disaster relief from federal agencies like FEMA and the National Guard that will aid these states and bring them back to glory.

And that’s how it should be.


Read the whole thing.

Oliver's premise is a ridiculous one, and here's why: There is a difference between government money budgeted for disaster relief and money budgeted for things like education. Nobody wants to privatize something like disaster relief because there's no way to privatize it.

Disaster relief is a unique animal. There's not really any way to make money out of providing it, so private enterprise doesn't do it. Thus there is no alternative to having the government provide this sort of thing. The only thing that comes close is insurance, but all they do is cut you a check for your losses after the fact. They don't save lives.

Schools, to use one of Oliver's examples, are a much different thing. There is a private education industry in this country and it works quite well. Students who attend private schools are, by and large, better educated (in a more efficient and cost-effective manner) than kids in public schools. And its been proven in practice that when parents are given options for their child's education, allowed to "shop with their feet" if you will, kids (especially low income and minority kids) get a better education.

This is the conservative philosophy at work. If you want efficiency, quality and cost-effectiveness you must have competition. If you just let the government handle things like education you're going to get a product that is typically just good enough to meet the very minimum standards. Why? Because there's no incentive to work any harder. Teachers and school administrators know that as long as they do a "just good enough" job their own jobs and salaries are safe because their "customers" (the students) really don't have anywhere else to go.

Government is a fat, inefficient behemoth. Private industry, on the other hand, is a sleek and efficient machine. These are simple truths observable in countless places in our society, and because they're true it means that we should seek to supplant government with private industry wherever possible. The people who would tell us that government does things better than private industry are saying so because either a) they're a politician or otherwise benefit from the government initiative in question or b) they're social marxists who don't believe that private citizens, and not politicians or bureaucrats, are best suited for making the decisions that most directly effect them.

Is private industry possible in the area of disaster aid? I'm not sure. I'm not prepared to make that argument, but using disaster aid as an example against privatization is just plain silly.

Comments

Avatar for Oliver

Except the conservative side often argues that social services should be left up to the private sector, when its clear that such functions - inefficient or not - are best left to the government if we want them to actually do what they’re designed for.

Oliver on August 30, 2005 at 01:08 pm
Avatar for Robert Perry

It should be remembered that, apart from ordinary emergency services, government hasn’t done a whole lot yet for the hurricane victims.  Put simply, the lives that were lost were lost before FEMA got their plane tickets to Baton Rouge.

And those emergency services?  Well, let’s start by remembering that the first fire departments were started by insurers and building owners, not cities.  So the very origins of fire departments are private, not public.  UL is private as well, as are the convoys of trucks of lumber and other building materials headed south.

Markets will, I would argue, provide a great portion of these services for the right price.

Robert Perry on August 30, 2005 at 01:09 pm
Rob
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What social services are you talking about Oliver?


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

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Rob on August 30, 2005 at 05:08 pm
Avatar for 2Hotel9

Oliver, the money being brought to bear by FEMA came from the taxpayers in those areas to begin with. Same with the National Guard. Had that money been invested and returning precentage to those who invested it, instead of being stolen by the government and wasted, they would have more money available for reconstruction. Look at the numbers, the amount of money paid into Fed and State taxes by the region hardest hit. All those refineries and petro-chem plants don’t absorb taxes. They pay them. Same for all the shipping in and out of New Orleans and Gulfport and Mobile. Get a clue Ollie. Put down the twinkie, climb out of the Westerville cesspool and wake up.

2Hotel9 on August 31, 2005 at 04:08 am
Avatar for Robin S.

I have no significant problems with the idea of government-funded assistance for the victims of natural disasters (though I think that after we bail the same people out for the second or third time in the same place, we should start telling them that we’ll either help them move to a less disaster-prone area or stop giving them aid), but there are private ways to manage disaster relief. 

There are any number of private organizations (The Red Cross is probably the most well-known example) that provide essential services during these kinds of disasters.  Granted, they don’t currently get enough money to replace the government intervention (nor do they have the same kinds of equipment that the government agencies can get), but their efforts shouldn’t be discounted.

Robin S. on August 31, 2005 at 10:08 am
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