mears said:
I believe in the free market. What economic system do you believe in?
What economic systems I "believe in" is largely irrelevant to the topic at hand and any attempt to derail is an insult to those who have died and have suffered in this vast human tragedy. I would much rather discuss with you what can be practically done to help the unfortunate victims of Katrina than play silly little word games over matters of faith surrounding economic models.
But if it makes you feel better I believe that all hitherto economic models play(ed) and essential role in the development of society as we know it (including historically slavery and feudalism). I also believe that it is impossible to simply overlay an economic model applicable to one set of conditions to another state where conditions are less suitable.
So back to the more important subject of the hurricane..
As a "believer" in a free market system, surely you will applaud how successfully the market system worked in the run up to the hurricane in that everyone who could afford to leave New Orleans was able to do so. On the other hand evil Cuba managed to evacuate over a million of its citizens when faced with a cat 5 hurricane, and no one died.
See the problem the free market is this- while much can be achieved in terms of bringing consumables to consumers it is not the best system to enact an immediate response to a natural disaster (though granted it could play a role in long term reconstruction). The market itself is dependent on a certain infrastructure, but this infrastructure is itself a function of state rather than of the market.
It has become the orthodoxy in recent years to substitute the functions of state for those of the market, but unfortunately the market is more adept at some things over others.
For example in this instance the best the market could possibly have come up with is an evacuation insurance where individuals insure themselves against pending natural disasters. But this would lead to the same outcomes- ie those who could not afford the bus fare out of town would not have been able to afford any such insurance.
Markets are a mechanism about bringing goods and services to those able and willing to pay for them, but in the case of a mass evacuation what was required was something far more universal, and regardless of ability to pay.
How the market is able to respond to natural disaster was illustrated by the partial nature of the evacuation ultimately leading to a far more costly intervention by the state to organise an evacuation under far less favourable conditions. It would have been far better to have run free buses just over a week ago. Instead of leaving the market to decide who was able to leave and who was forced to stay.