Sunday, September 04, 2005

Starve the Beast

For several decades, it has been the conservative mantra to “starve the beast.” Cutting taxes and entitlement programs are, according to the believers, the basis for America’s prosperity and power.

But for old feds who dealt with disasters of the past, it’s sad to see the sorry state of governmental response to Katrina. I will not slam the leaders of Homeland Security or FEMA; their day on the griddle will come soon enough.

My complaint today is with the conservative movement that consciously moved to “starve the beast.” It is very difficult to say this is how we used to do it when we never faced a calamity of anywhere near the magnitude of Katrina. But I’ll try.

The conservatives want to remove the feed bag from the old ox and let private charity deal with as much of the problem facing us as possible. I don’t find that an unworthy goal, but let’s look at recent situations. Based on a visit to the website of the Red Cross, it appears that about $558 million was donated to that institution for the Tsunami last year - a lot of money. The Salvation Army’s site indicates that Americans have already donated more than $32 million to aid the victims of Katrina as of this morning (Sunday, September 4, 2005.) This too is a great outpouring.

Let’s just assume that private donations from around the world to all of the charities committed to helping the victims of Katrina quadruple those for the tsunami and that Salvation Army collections for Katrina increase tenfold from those now in the coffers. With all wild speculation, we might assume that $5 billion in private charity will be collected and expended on this disaster. That would be an amazing outpouring of money and empathy.

But let’s step back and note that insurance losses are expected to exceed $25 billion, and that the total losses are likely to exceed $100 billion. The catastrophe makes all these payments pale in comparison with the need. The federal government passed an emergency appropriation of $10.5 billion yesterday. Based on my reading of some of the provisions, it will be some time before much of that aid buys food and blankets for individuals.

When FEMA was set up in the 1970s, it was able to tap the entitlement monies of the grant making federal agencies to deal with the disaster facing the nation. Thus, HUD, HHS (then HEW), Labor, and the rest were dunned and expected to come up with money – right now - from their unexpended and uncommitted grant program monies.

Today, the emaciated beast has almost no money in any of these pockets and FEMA and Homeland Security look like a bunch of incompetent braying jackasses.

Thank goodness, the emergency appropriation is but a down payment on the great loss. Unfortunately, the money must still trickle down to state and local governments and ultimately to individual victims through the elaborate grant making process. This will be short circuited to the greatest extent possible, but relief and recovery will take time – much time.

My points are that intentionally “starving the beast” has made response far slower than it would have been and, far more important, that private donations, however great, can never displace government as the principal mitigator of true calamities.

The starved beast of government is shown for all its shortcomings as it responds to Katrina. Citizens who see a role for government in the life of the nation must demand that irresponsible tax cuts CEASE! Government by pork – as in the recent highway bill – may get men and women reelected to Congress but ultimately undermines the government’s ability to perform in emergency situations.

The people must demand more of their government than tax cuts for the rich and no joint sacrifice in the face of war and disaster. Your president, your two senators, and your representative are dancing. Will you demand that they stand and deliver?

Blog on!

Wild Bill

3 comments:

Anonymous said...

Excellent essay. Thanks. So good to hear from someone who has common sense and a heart. Your insider's perspective as a retired government worker is illuminating. Milles Mercis,
Charleen Touchette
Author of "It Stops with Me: Memoir of a Canuck Girl"
Santa Fe, New Mexico

Anonymous said...

Good essay. I worked for the Office of Management and Budget in the 1970s and spent six months in Wilkes Barre PA in the aftermath of Hurricane Agnes which was a "poor cousin" to Katrina. Several things stand out from that experience that could be lessons for the future. First, the President sent a high level personal representative, Frank Carlucci, to coordinate Federal action. [Carlucci was later Secretary of Defense.]He had a small support staff and reported directly to the White House which made things move quickly on key decisions on resources, waivers, and commitments to action. Second, we learned that too many different agencies were involved in disaster relief and six years later in the lsate 1970s FEMA was created and a central independent agency with most of the key disaster relief programs and emergency authorities in one place. The recentent decision to place FEMA under the huge Department of Homeland Security once again bears out the wisdom the "bigger is not necessarily better" when it comes to large institutions, especially government bureaucracies. Simply put, too many people try to get in the act when speed of decision making action is often critical. Lets relook at the DHA model as well as a White House which may be a bit too "laid back" and too quick to assume "it's not really our problem".

wildbill944 said...

I was with HUD during Andrew and that is the model I used for the essay. I later worked at OMB in the office that you (Juan Pablo) alluded to.

Do you play golf?