Apparently, we taxpayers gaurantee $645 billion in flood insurance so wealthy folks can build second homes on the beech, and have them wash away every few years at taxpayer expense. USAToday, breaking from general habit, actually criticized a government giveaway in this article. But I think that the John Stossel article linked by Q&O is better (Memo to ABC web guys -- your articles stay online for years so it might be nice to add a year to that date in the byline). Stossel points out that the tab for flood insurance understates the beachfront subsidy: Costs for FEMA, disaster relief, Corps of Engineers projects, beech erosion abatement, etc. all are also government subsidies for living in dangerous locations.
But the outrage is that federal flood insurance exists at all. There is
a quarter-million-dollar limit on each payment, and as long as I build
my house in accordance with zoning laws and ordinances, there is no
limit on how many times the government will pay if a house keeps