After 9/11, the sympathy of the nation focused on the orphans and widows of the nearly 3000 victims of the al Queda attack. Many of those victims were well-heeled--investment bankers' families who lived in multimillion dollar homes and had bank accounts, life insurance policies and other liquid assets, not to mention various valuables that could be sold, if needed, to finance a change. But the nation did not think those families should suffer because al Queda had chosen them to bear the brunt of the attack. Instead, the country very quickly put together a victim compensation fund that would provide hundreds of thousands, or sometimes millions, to each family to tide them over the difficult transition period. See this entry in Wikipedia describing the fund. Even families with huge assets got substantial funds. Insurance and other programs, such as loan programs and small business assistance programs, helped as well.
The average 9/11 payout from the fund, insurance and other aid was about $3.1 million per recipient, with families of first responders receiving an extra million, on average. See this report of a Rand study breaking down the various sources of post 9/11 recovery funding and recipients. The Rand study emphasized the concerns about fairness issues where families of high earners were compensated more than families of low earners. Id. It urged the nation to consider what kind of system should be used in the future to compensate victims of terrorist attacks. Id. Clearly, these same issues should be considered in responding to natural disasters such as Katrina, which can devastate entire metropolitan areas requiring billions of recovery funds for public services and more aid to resettle affected families.
Flash forward to 2005 and the Katrina disaster in New Orleans. Many homes and lives were lost. Much of the mayhem and destruction could have been prevented if the Bush administration had heeded the detailed warnings it received 48 hours before the storm hit. See "White House Got Early Warning on Katrina" in the Jan. 24 Washington Post (noting that, in spite of this clear early warning, Bush claimed three days after Katrina that the scale of problems in New Orleans was unexpected, and suggested that nobody had anticipated the breach of the levees). Those warnings predicting breaches of levees, utilities failures, and communication failures with loss of power to fire, police and emergency workers. Putting adequate communication lines in place ahead of time could have made an enormous difference. It would have helped even more if the head of the Federal Emergency Management Agency had not been an incompetent crony appointed for his loyalty rather than for his brains or his skills.
In part because the incompentence made the suffering even worse than necessary, the event, like 9/11, galvanized the entire country. Like 9/11, we saw the devastation and vowed to make up for the losses. Like 9/11, we realized the enormous burden borne by the victims who were even more vulnerable than most 9/11 victims' families had been. On the entire nation's behalf, Mr. Bush appeared dramatically in Jackson Square at night to solemnly pledge the nation's attention to the disaster would be swift and mighty--we would reconstruct and rebuild those broken lives.
Five months later, Bush's promises resound with hollowness. See this story's item by item accounting in the Washington Post. The huge Katrina tax bill mainly benefited big business, big oil, and big charities and their wealthy owners and contributors. The poor of New Orleans and the rest of the Gulf Coast that so need and deserve our help have gotten almost nothing. New Orleans is dying of the national neglect. See this Washington Post story. There is no victim's fund paralleling the 9/11 fund.
And we have to ask, why not? Surely it would make sense to set aside the funds necessary to purchase each of the destroyed and damaged homes, in the Ninth Ward in particular. We could take $30 to 40 billion and create a compensation fund for the 160,000 or so who lost their homes or lost loved ones. The fund could set a threshold price for damanged homes (say, $100,000) that would be paid to everyone, rich or poor. That threshold cost would be a one-time amount of approximately $20 billion. There could be several additional brackets based on need (including education, mobility, disability, number of young children in the family, number of elderly adults in the family). The neediest families might receive an additional $100,000, and the wealthiest families would receive no additional amount. That additional amount could take as much as $10 billion. For a rather paltry $30 billion, we could pour needed cash into the Gulf Coast economy that would create jobs, keep businesses going and lay a foundation for civic renewal. That is less than one-tenth the budget deficit that the country ran this fiscal year and less than half the cost of our occupation of Iraq for this fiscal year. For that relatively small amount, every single family that was devastated by Katrina could be compensated and given a fresh start. It would be up to each family how the funds would be used--education, to start a new life in their current new locations, to rebuild in New Orleans, or whatever. A further $20 billion should be immediately appropriated and allocated among the hardest hit municipalities according to pre-Katrina populations. That funding could ensure cleanup costs will be met, and help cities like New Orleans purchase some of the lands that are not safe for habitation without category 5 levees. It would be a much more significant economic stimulus than the Bush program of tax cuts for the wealthy, since recipients could be expected to spend substantial amounts on shelter and food needs as they reestablish themselves. it would be a jumpstart fund for jobs in the area, providing a multiplier effect as cities gained in tax revenues and used those further revenues for additional recovery projects.
Why hasn't Congress yet passed such a program of victim assistance? (They could call it the Katrina Aid and Jobs: Unleashing New Synergies (KAJUN) Act, and make political hay out of rescuing the popular tourist area of the Gulf Coast.) It appears that Congress is too busy, instead, passing budget reductions that dismantle the social safety net we put in place after World War II and handing out largesse to wealthy taxpayers and corporations like Halliburton that charge for services never provided.
The Louisian delegation proposed something that would cost the government even less--establishment of a "Louisiana Recovery Corporation" that would buyout damaged homes at 60% of homeowners' equity. Not unsurprisingly, given this White House's record of uncaring unconcern for the poor, the idea has been shafted by Bush National Economic Council director Allan Hubbard. See this story in USA Today.
The rationale provided by Hubbard is unconvincing. He says that recovery programs should be funded through the "normal" appropriations process in order to be more "accountable" and "transparent." This is the government that has funded more pure pork barrel projects through its regular appropriations channels than any in recent history. Those projects are neither accountable nor transparent, but rather buried deeply in complex bills, frequently with obfuscating language. Furthermore, this government has routinely funded its "pet" projects--the invasion and occupation of Iraq--through supplemental appropriations, so that it does not have to account for them or make "transparent" the funding and its impact on the deficit and its relation to the tax cuts for the wealthy. Accountability and transparency are apparently only advisable qualities for programs that the administration does not care to see passed.
Of course, given the current hypocritical "deficit reduction budget bill" goal of the two Republican-dominated houses of Congress who intend also to pass a tax cut bill that dwarfs the so-called deficit reductions, getting any reasonable aid package for Katrina victims will be well nigh impossible. The Republicans are busy increasing Medicare premiums for our elderly so that the wealthy pharmaceutical companies can get a bigger share of the federal health care dollars. (The further incompetence of this administration in administering the prescription drug benefit, and the elderly sick and poor who are finding themselves unable to afford their medication, are topics best left for another day.) They're not adding funds to help Katrina victims pay for their education--they're planning to reduce funds available for student loans for those who were not born to silver spoons. They are not likely to find any room in their hearts for a program that assists primarily African-American, Democratic, anti-Bush voters who are still frustrated by the incompetence of Bush's cronies.
What a shame that we cannot do justice in New Orleans for the hundreds of thousands of desperately poor Americans who were harmed by Katrina, when we can have such solicitude for the few thousand mostly well-off Americans who were hurt by 9/11. It says something about our racism, our classism, and our lack of human decency and charity, and what it says is not good.