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Is Federal Involvement Impeding Disaster Recovery?

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According to Chris Edwards, the director of tax policy studies at Cato Institute, the federal government is involving itself too much in the business of disaster recovery. Edwards writes that local authorities, along with the private sector, are in a better position to take lead roles in disaster recovery. Too much federal intervention could actually slow down the process of helping those affected by a disaster. He concludes:

As for disaster response, federal involvement is appropriate when agencies have unique capabilities to offer, such as the Coast Guard’s search and rescue capabilities. But it is mainly state, local, and private entities that own the needed resources and are on the scene to assist in emergencies. The states, for example, employ 1.3 million people in police and fire departments. As for the private sector, the 9/11 Commission report noted, “85 percent of our nation’s critical infrastructure is controlled not by governments but by the private sector, [so] private-sector civilians are likely to be the first responders in any future catastrophes.”

When the states need additional resources after a disaster, they can and do rely on help from other states under mutual aid agreements. Similarly, electric utilities have longstanding agreements with each other to share resources when disaster strikes. Such horizontal support makes more sense than top-down interventions from Washington.

Federal intervention can impede disaster response and rebuilding because of the extra paperwork involved and the added complexity of decisionmaking. A growing federal role may also induce states to neglect their own disaster preparedness because officials assume Uncle Sam will bail them out when disaster hits.

Growing federal intervention has been sadly crowding out state, local, and private roles in handling natural disasters. We should reverse course and only task the federal government with those roles that are unique and truly beyond the capabilities of other entities in society.

Read more here.

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E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.
E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.

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