The Freeman 1972 - The Ludwig von Mises Institute

1972 FLOOD RELIEF 593erty, and lives and livelihood dependenton that property, is aboutthe same in both of these catastrophes.When Federal, state, and localgovernments spend well over $200billion a year waging various warsagainst communism, famine, pestilence,ignorance, poverty, thismeans that property, lives, andlivelihood are being withdrawnfrom the open market of willingbuyers and sellers at the rate ofa storm like Agnes about twice aweek. And recent flood victims cantestify, that's a lot of resourcesdown the drain.It may be argued, of course,that space exploration is wellworth $2 billion a shot. And whois to say him nay if any individualwants to risk his own life and investhis own scarce and valuableresources in such research and exploratoryventures? Or to fightcommunism in Vietnam? Or tosupport the prices of farm products?Or to carry out variousother welfare programs? Or whateverelse an owner voluntarily doeswith his property in ways not injurious to other peaceful persons?What is deplored are devastatingforces raging out of control- coercive power that destroys thelives and the property of innocentand unwilling victims: a violentstorm like Agnes, a moon shot orany other government project thatis not essential to the defense oflife and property and that mightnot be done if the doing dependedupon willing buyers and sellers.Violent Recovery?How do individuals, how does aneconomy recover from an Agnestypedistaster? According to theWall Street Journal, July 13, 1972,"Flood relief funds exceeding $1.7billion were requested by thePresident .. . to meet fully therequirements of some 115,000homeowners and 6,000 businessmenin six states who sustainedflood damage ... 30-year loans at1 per cent interest, and repaymenton the first $5,000 wouldn't be required. . . the largest singleamount [$1.7 billion] ever allocatedfor a recovery effort."One's heart bleeds for the victimsof Agnes, especially if hehappens to be one of them. Butthe harsh fact is that neither thePresident nor the Congress possesses$1.7 billion worth of scarceand valuable resources to give toflood victims..The proposal is totake that additional amount of resources,by the coercive power oftaxation, from present owners, atan average rate of $8.50 per man,woman and child - at a substantiallyhigher rate, of course, fromthe smaner number who pay taxesdirectly: the producers, savers, investors,workers and providers of