May 22, 2013
Why Climate Change Will Make You Love Big Government
Posted on Jan 28, 2012
By Christian Parenti, TomDispatch
The damage to Vermont was estimated at up to $1 billion. Yet the state only has 621,000 residents, so it could never have raised all the money needed to rebuild alone. Vermont businesses, individuals, and foundations have donated at least $4 million, possibly up to $6 million in assistance, an impressive figure, but not a fraction of what was needed. The state government immediately released $24 million in funds, crucial to getting its system of roads rebuilt and functioning, but again that was a drop in the bucket, given the level of damage. A little known state-owned bank, the Vermont Municipal Bond Bank, also offered low-interest, low-collateral loans to towns to aid reconstruction efforts. But without federal money, which covered 80% to 100% of the costs of rebuilding many Vermont roads, the state would still be an economic basket case. Without aid from Washington, the transportation network might have taken years to recover.
As for flood insurance, the federal government is pretty much the only place to get it. The National Flood Insurance Program has written 5.5 million policies in more than 21,000 communities covering $1.2 trillion worth of property. As for the vaunted private market, for-profit insurance companies write between 180,000 and 200,000 policies in a given year. In other words, that is less than 5% of all flood insurance in the United States. This federally subsidized program underwrites the other 95%. Without such insurance, it’s not complicated: many waterlogged victims of 2011, whether from record Midwestern floods or Hurricane Irene, would simply have no money to rebuild.
Or consider sweltering Texas. In 2011, firefighters responded to 23,519 fires. In all, 2,742 homes were destroyed by out-of-control wildfires. But government action saved 34,756 other homes. So you decide: Was this another case of wasteful government intervention in the marketplace, or an extremely efficient use of resources?
Facing Snowpocalypse Without Plows
There are, however, other less noted examples that nonetheless helped concentrate the minds of government planners. For example, in the early spring of 2011, a massive blizzard hit New York City. Dubbed “Snowmageddon” and “Snowpocalypse,” the storm arrived in the midst of tense statewide budget negotiations, and a nationwide assault on state workers (and their pensions).
In New York, Mayor Mike Bloomberg was pushing for cuts to the sanitation department budget. As the snow piled up, the people tasked with removing it—sanitation workers—failed to appear in sufficient numbers. As the city ground to a halt, New Yorkers were left to fend for themselves with nothing but shovels, their cars, doorways, stores, roads all hopelessly buried. Chaos ensued. Though nowhere near as destructive as Katrina, the storm became a case study in too little governance and the all-too-distinct limits of “self-reliance” when nature runs amuck. In the week that followed, even the rich were stranded amid the mounting heaps of snow and uncollected garbage.
Mayor Bloomberg emerged from the debacle chastened, even though he accused the union of staging a soft strike, a work-to-rule-style slowdown that held the snowbound city hostage. The union denied engaging in any such illegal actions. Whatever the case, the blizzard focused thinking locally on the nature of public workers. It suddenly made sanitation workers less invisible and forced a set of questions: Are public workers really “union fat cats” with “sinecures” gorging at the public trough? Or are they as essential to the basic functions of the city as white blood cells to the health of the human body? Clearly, in snowbound New York it was the latter. No sanitation workers and your city instantly turns chaotic and fills with garbage, leaving street after street lined with the stuff.
More broadly the question raised was: Can an individual, a town, a city, even a state really “go it alone” when the weather turns genuinely threatening? Briefly, all the union bashing and attacks on the public sector that had marked that year’s state-level budget debates began to sound unhinged.
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