The Invading Sea
  • About
  • Editorials
    • Earlier opinion pieces in South Florida media about climate, rising seas
  • In the News
  • Resources
    • What You Can Do
    • Frequently Asked Questions
No Result
View All Result
The Invading Sea
  • About
  • Editorials
    • Earlier opinion pieces in South Florida media about climate, rising seas
  • In the News
  • Resources
    • What You Can Do
    • Frequently Asked Questions
No Result
View All Result
The Invading Sea
No Result
View All Result

How the rich are using federal money to buy their way out of climate catastrophes

by Contributors
October 31, 2019
in Influencers
0

If experts are to be believed, climate change is set to reshape America’s physical geography through rising sea levels and increasingly wild weather.

Despite the risks, many federal programs are being used to protect some of America’s wealthiest seaside communities. Rather than forcing taxpayers to bankroll their beach lifestyle, the Federal Emergency Management Agency (FEMA) should reform its programs so that the cost of coastal living matches the risk of modern disasters.

Tasked with overseeing the nation’s disaster mitigation and response programs, FEMA runs a “managed retreat” initiative that gives local officials grants to buy and demolish properties at risk of flooding. But recent research by a team of academics from the University of Miami, Harvard University and Stanford University finds that wealthy counties are most likely to receive the money.

Oliver McPherson-Smith

The researchers also note that poorer areas are more likely to be demolished, which would increase the property value of the wealthy residents who stay.

The use and abuse of federal emergency funding to benefit wealthy coastal and riverine communities has become a routine occurrence. For example, FEMA also manages the National Flood Insurance Program (NFIP).

As the largest flood insurance program in the country, the NFIP covers more than 5 million residential policies. But the program relies upon outdated flood-risk maps, meaning that FEMA can’t accurately price the risk of a given area.

While FEMA says that it uses “the best available technical data to create the flood hazard maps,” the NFIP is currently underwater to the tune of $20 billion worth of debt — and that is after Congress forgave an addition $16 billion in 2018.

Clearly, no private insurance firm would be able to fail for so many years to the degree with which the NFIP has. But private insurance is often not even an option for consumers, because the NFIP undercuts its private competitors by offering premiums that do not reflect the actual risk.

With taxpayer money shoring up coastal and flood-prone real estate, it’s little surprise that so many Americans are happy to stare down catastrophic climate change. A study by academics at the University of Notre Dame this year found that coastal homeowners who believe in climate change are no more likely to take disaster precautions than their skeptical neighbors.

But why would they?

This multi-billion-dollar moral hazard syndicate is fiercely guarded by political representatives who believe the public purse is bottomless. No doubt under pressure from their homeowning constituents, members of Congress have vowed to fight initiatives that would align NFIP premiums with the risk they cover.

Similarly, a recent bipartisan bill (H.R.3167) calls on FEMA to update its maps. Yet, the same legislation simply reauthorizes the NFIP for an additional five years and allows the program to run up even more taxpayer-funded debt that the bill’s sponsor openly admits could never be paid back. Without a requirement to price risk competitively, these reforms are toothless.

Market-based reform, however, is not impossible. In June, FEMA took a major step by publishing decades of data on flood damage claims. While this increased transparency will allow private insurance companies to better tailor their policies, it doesn’t go far enough. Bureaucrats are still sitting on a trove of data that would support the private insurance market, which would give consumers greater choice while easing the reliance on the NFIP.

These taxpayer-funded federal programs provide welfare for communities that want a certain lifestyle — but don’t want to pick up the bill when things go wrong. With climate change upon us and tides rising, it’s time for Congress to increase transparency and stop bankrolling an unsustainable subsidy that benefits the rich.

Better mapping and pricing at risk is paramount, and spreading that risk to private insurers is necessary to cut this wasteful federal spending. It’s time for Congress to fix the problem.

Oliver McPherson-Smith writes for the American Consumer Institute. He wrote this for InsideSources.com.

“The Invading Sea” is part of the Florida Climate Reporting Network, a collaborative of news organizations across the state focusing on the threats posed by the warming climate.

 

Tags: FEMAFlorida Climate Reporting NetworkHarvard UniversityInsideSources.comNFIPOliver McPherson-SmithStanford UniversityUniversity of Miami
Previous Post

We Can All Actually help curb the warming climate with the Florida Carbon Sequestration Bank

Next Post

“Electrify Everything” policies would eliminate gas heating and cooking

Related Posts

As the planet gets hotter, South Floridians need to pay attention to Greenland’s melting ice
Influencers

We need the courage to truly tackle global warming

by Harold Wanless
February 25, 2021
You already can see the damage in Florida from rising sea levels
Influencers

You already can see the damage in Florida from rising sea levels

by Jim Carroll
February 2, 2021
Bankers and governments need to develop plans that will enable property owners to retreat to higher ground without going broke
Influencers

Many property owners don’t understand how flood insurance works

by Jennifer Scherff
January 11, 2021
Next Post
“Electrify Everything” policies would eliminate gas heating and cooking

“Electrify Everything” policies would eliminate gas heating and cooking

Twitter Facebook

About the Project

The Invading Sea is a collaboration by news organizations across Florida to address the threat we face from sea-level rise. We want to raise awareness, amplify the voice of our region and create a call to action that can’t be ignored. Read More

Archives

Categories

Audio Editorials Faces of Sea Level Rise Influencers In The News Other The Business of Climate Change Video

Watch How the Water Will Rise

sea level rise map
See what happens to your neighborhood as the sea level rises with this interactive map from Climate Central.

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • About
  • Editorials
    • Earlier opinion pieces in South Florida media about climate, rising seas
  • In the News
  • Resources
    • What You Can Do
    • Frequently Asked Questions

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In