Government assistance

Note the following excerpts from an AP news story June 11th in Cedar Rapids, Iowa and my comments:

"Jaylynn Banks and her family have moved four times since the Cedar River burst its banks last June and flooded a huge swath of Cedar Rapids, including their neighborhood. Their home, like those of hundreds of others here, is too damaged to inhabit, so they pay rent along with their mortgage, all on an annual income of about $20,000 after taxes. With their living situation in constant flux, Banks said they've been living day-to-day, unable to plan for the future."

"State officials estimate they need $150 million to buy out the 1,041 properties in three of the worst affected areas, each with its particular issues and eligibility for federal money."

First of all, I didn't think people with such low income had to pay taxes. Secondly, how can they pay rent and mortgage AND live day-to-day on $20,000 a year? I would only guess that the mortgage on the $140,000 average property in Cedar Rapids would be at least $12,000 per year and rent on what she later calls a "nice rental property" would be another $6,000 per year leaving $2,000 per year for the other basic needs of food and clothing. That would be pretty tight. How do you do it? Well, here's how.

"The Federal Emergency Management Agency quickly stepped in to provide flood victims with emergency cash. Banks said the $11,000 the agency gave her family paid for clothing, food and shelter and got them through what was otherwise a miserable year. But FEMA scaled back its assistance after the immediate crisis had passed and the long-term assistance has been slow to materialize."

Do they really mean slow to materialize or will never materialize? FEMA does not have unlimited funding for all of the 1,000+ households? It will not last forever; it cannot. Congress is already spending more money than it has even after being told to "pay as you go". They are already printing half of what they spend.

"A lot of families have future plans. We're going to do this this summer. We're going to do this next year. We cannot do that," said Banks, who has pasted colorful signs, including one reading 'Obama, please help us', in and around her damaged home."

Yes, Mr. President, don't you hear the cry of real, hurting, downtrodden people coming from an area struck by a massive flood over a year ago? Aren't these the exact kind of people you say you want to help with taxpayer, I mean government money? What did you do for them while in the U.S. Senate last year? What have you done for them as President this year?

"The U.S. Department of Housing and Urban Development, which oversees long-term community rebuilding, announced $3.7 billion in new disaster grants for 11 states Wednesday, including $516 million for Iowa. That money will help, but Iowa's still far short of the $8 billion to $10 billion in aid state officials estimate is needed for recovery, including more than $5 billion for Cedar Rapids alone."

Could he and Congress have not added a mere $10 billion earmark to the $787 billion stimulus bill this past February? Could they not have bailed out flood victims instead of banks, car companies and insurance companies who were paying millions in bonuses to their executives and handsome benefits to unions?

"Of the three hardest-hit areas, the area closest to the river will be turned into a park and its 192 properties are eligible to be bought out by FEMA. In the second area, which is a bit farther from the river, all 377 houses will likely be destroyed to make room for a levee. But the Army Corps of Engineers hasn't decided on its placement, and may not until December 2010, leaving homeowners with as much as 18 more months of waiting. Residents with homes in the third area, a working-class neighborhood with 664 homes, including the Banks', will be allowed to remain, but many don't have the resources to renovate or rebuild. Residents have been told to wait up to six more months before the city will know if it has enough money to buy them out. "

Are they really going to wait that long for government to do something? Do they have no family, friends, churches or other charitable organizations to which they can go for much more immediate help?

My town was hit by one of those 100 year floods nearly two years ago. The city and county asked FEMA for help, which took a while or may even still be in the waiting, but they also formed a task force that went out to the private sector for help. Churches, individuals and civic organizations such as the University Kiwanis Club stepped up to the plate with financial and labor assistance.

People will never be pleased with government assistance, and the people from whom money is taken to then be given away certainly aren't pleased. Forced wealth redistribution will increase misery for rich and poor alike.