A worker loses his job or has a medical emergency that drains the family's reserves. Sometimes the money helps families wiped out by forces of nature to get back on their feet. But too often disaster relief is plain too much. Instead of financing repairs on a one-time basis, FEMA funds go to rebuild homes that remain in the path of nature's fury. When Hurricane Bonnie hit the North Carolina coast a few weeks ago, it caused considerable damage.
Hurricanes battering the east coast are a frequent occurrence.
Practically every year, at least one hurricane wreaks havoc on the beach houses of North Carolina's outer islands. Yet, thanks to federal disaster relief, these homes are rebuilt again and again. Without cheap insurance, living on many of the islands would be impossible. Congress never meant for flood relief insurance to be misused in this fashion when it passed disaster legislation back in 1968. In effect, the government is subsidizing a way of life, encouraging people to build and rebuild in areas that they know are going to be flooded.