Congress should
- require federal government
insurance programs to use private-sector underwriting and risk
classification techniques,
- authorize tax-deferred treatment of
private insurers’ catastrophe reserves, and
- reduce the scope of current
government insurance programs and not launch any new federal
reinsurance schemes.
Who could know that building a
home in "tornado alley" might be asking for disaster?
Who could possibly predict that building a hotel in the path of a
hurricane could lead to disaster? What psychic could foresee any
problems from constructing a house on a floodplain, or at the base
of Mt. St. Helens? Could anyone in California have ever imagined
that an earthquake might level their home? Is it the business of
the federal government to repair the damage done to a beach front
home in Malibu every year, year after year, as the winter rains
repeatedly erode the shore, and the owner repeatedly rebuilds the
home on the same spot?
America became the greatest
nation on earth by cultivating "Yankee Ingenuity" and
personal responsibility, not by clamoring for government bailouts.
America became the greatest
nation on earth by responding quickly and magnanimously to genuine
disasters and human needs.
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