Economic ignorance rises to the top: that seems to be one explanation for FEMA’s continued support of building in flood-prone areas, and Congressional demands for FEMA to do even more of the same.
A Washington Post story (Oct 11, 2005 ) by Gilbert Gaul noted, “The pattern of federal flood payments on Dauphin Island [AL] illustrates the growing share going to properties that get hit over and over. Federal data show that 300 buildings with multiple losses account for more than two-thirds of all flood payments the town has ever received  $21.3 million. Katrina claims could add tens of millions.”
Gaul continued, “Nationally, properties with multiple losses account for about 25 percent of the flood program’s losses while representing 2 percent of all insured property.”
Valid concerns.
Read the full story, A Flood of Folly, at The Mises Institute
