Anytime a politician tells you that their plan will save money, you have to ask—if this plan makes so much economic sense, why aren’t private parties doing it already? This is especially true with something like hurricane and disaster insurance. From ClimateWire:
U.S. Rep. Ron Klein (D-Fla.) reintroduced the Homeowners Defense Act, which would make the Treasury Department a reinsurer during massive events that have a half a percent chance of occurring in any given year.
Washington would be liable for up to $200 billion under the measure. But Klein says premiums paid into the fund would cover those costs and free taxpayers from financial burdens, like emergency spending, sparked by natural calamities.
"Isn’t it better to have an obligation to pay the federal government?" he said in an interview.
It’s better for Florida homeowners, but obviously worse for the rest of us taxpayer who will likely lose out under this plan. If it made economic sense, there would be no need for the Feds to get involved.
The article also says that Klein’s “opponents, he says, are wrong to say the bill provides subsidies — and, in turn, encouragement to develop still more vulnerable coastlines.” Klein is obviously wrong. If this were not a subsidy, there would be no need to do it.