Afterthoughts on the Aftermath of the New Orleans Flood

Wednesday, October 5, 2005
Eric Schansberg ponders the lessons that we can learn from the aftermatch of Hurricane Katrina. One of Schansberg’s biggest questions in light of the government’s failure to effectively manage the disaster is this: if the government, both local and federal, failed at all levels to deal with Katrina before, during, and after it made landfall, shouldn’t we be looking for other options rather than trying to depend more on a system that obviously failed? Schansberg suggests that while the government does play a role in the welfare of the nation, private organizations, charities, and local community groups are much more capable of dealing with the emotional and physical care of those displaced in the aftermath of the hurricane.
Private charitable activity is always better. Charity is always preferred ethically because people are engaged in voluntary, mutually beneficial exchange with others. Charity is always preferred biblically because it fills the biblical mandate to love others, especially those who are the most vulnerable. Charity, if done well, is preferred practically, because it is more effective, more efficient, and can focus on the spiritual as well as the material concerns of the needy. Again, if government is ineffective, shouldn’t our response be less dependence on government and more encouragement of private activity?

Read the full commentary here.
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The Poor Suffer Most

Wednesday, October 5, 2005
Also from last week’s McLaughlin Group, Mort Zuckerman from U.S. News & World Report makes the important point that rising costs of gasoline greatly impact the poorest and most vulnerable populations.
MR. ZUCKERMAN: ...It is very difficult in America to really cut back on gasoline consumption, because people go to work and go shopping in their cars. We do not have public transportation in the way that Europe does.

MR. MCLAUGHLIN: Well, we need that for the macroeconomy and the microeconomy.

MR. ZUCKERMAN: Yes, we do need -- absolutely, because it is the sole means of transportation both to jobs, to schools and to entertainment. So it is --

MR. MCLAUGHLIN: Forget the means. I’m talking about consumption, consumption, consumption.

MR. ZUCKERMAN: I’m talking consumption, yes. But the other part of it is when gasoline prices go up, if they go up by 50 cents a gallon, people use 20 gallons a week. Okay, that’s $10 a week or $500 a year. And for a couple, that’s $1,000 a year. For the poor people or the people earning relatively...It really hurts a lot. So it really disproportionately hits the poor.

So while prices go up and the market adjusts and people will make decisions based on that, some of us don’t have all options to choose from that a large amount of disposable income allows. If you struggled before when gas was $1.50 a gallon to afford what it takes to commute to your job, imagine when that cost is doubled. Certainly there are still general possibilities for off-setting some of this burden (such as carpooling or relying on what public transportation there is), but especially the short-term effects when the costs of a commodity like gasoline rise as they have, as Zuckerman says, it “disproportionately hits the poor.”

So while on the broader economic level it is best to let the market work, at the same time churches, charities, and community groups should be acutely aware of this, and attempt to address these individual situations as best they can.
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Let the Market Work

Wednesday, October 5, 2005
Check out this exchange, involving Tony Blankley from The Washington Times, Pat Buchanan of MSNBC, and Eleanor Clift of Newseek, from last week’s McLaughlin Group about President Bush’s call for people to conserve gasoline in their daily activities:
MR. BLANKLEY: Let me make a quick point. Free-market prices maintain equilibrium of supply and demand. Let the price go up. People will make individual decisions.

MR. MCLAUGHLIN: Right.

MR. BLANKLEY: And they will cut back. They did when the prices went up. Some did; some didn’t. The idea of hortatory calls for conservation never work.

MR. BUCHANAN: John, they are all buying Eleanor Clift Priuses and they’re not buying my Navigators anymore.

MS. CLIFT: Right. (Laughs.)

MR. BUCHANAN: The market is working. People will not drive when the price goes up --

MR. MCLAUGHLIN: So you agree --

MR. BUCHANAN: -- but they’ll put investment and money into oil.
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