But these providers have to compete with each other, a process which results in prices that are neither too high, which would lead to under-utilization, nor too low, which would lead to waste. If government intervenes by mandating artificially low prices, it conveys misleading information to consumers, causing them to use more than they should of scarce resources, and making existing shortages more intractable. If capitalists didn't benefit, it wouldn't make economic sense for them to provide people with what they want. The other beneficiaries, who seem somehow forgotten, are the people with whom the capitalists make their exchanges. It's not only local government that impedes market adjustment.
Natural disasters are boons to the central government as well.
He did not offer to clean up debris or have Congressmen repair the highways. The timing worked in the government's favor as well. The extra spending came too late to be included in the FY 1995 budget, so spending and deficit projections were even more off the mark than usual. The central government did not route the money directly to the L.A. residents. That would have taken much of the fun and political advantage out of government compassion.