Wednesday, January 25, 2006

Walter Williams in Townhall

Writing in Townhall today, Walter Williams discusses FEMA and its response to Katrina, and analyzes if Wal-Mart, so immediate and efficient in Katrina relief, would have fared any better than FEMA if it were also government agency.

The FEMA fiasco is discussed in several articles in the December 2005 issue of The Freeman: Ideas on Liberty magazine, published by the Foundation for Economic Education, the nation's first free market think tank (fee.org). Hillsdale College professor of economics Robert Murphy points to some of FEMA's stupidity in response to Hurricane Katrina, which includes "delaying firefighters two days in Atlanta hotels to receive sexual-harassment training and watch videos on the history of FEMA while people were dying in New Orleans."

By contrast, private firms like Wal-Mart, Sam's Club and Home Depot had trucks on the road immediately after the hurricane. Stores even gave away items like chain saws and boots for rescue workers, sheets and clothes for shelters, and water and ice for the public. Wal-Mart was so efficient that there was talk among some Louisiana officials of letting Wal-Mart take over FEMA's job and a suggestion that Wal-Mart CEO Lee Scott run FEMA. Freeman editor Sheldon Richman says the latter suggestion misses a very important point. Wal-Mart was effective because it was not a government agency. If Mr. Scott were in charge of FEMA, he wouldn't do much better than its former director, Michael Brown. Government cannot achieve the efficiencies of a business. Trying to get government to be as efficient as business is as hopeless as trying to teach cats to bark and dogs to meow.
If this is the case, how did we end up with layer upon layer of government programs designed to help us with everything?

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