30
Sep
2005

Shared sacrifice?

The American Prospect
by Robert B. Reich

09/29/05

Who will end up paying for Katrina and Rita? Don't expect an answer from the White House. The president hasn't called for any national sacrifice other than asking Americans to drive less. Yet Katrina and Rita are likely to demand widespread sacrifice nonetheless. Normally, hurricane destruction improves the nation's economy because of all the rebuilding that has to be done. Conveniently, the national income accounts don't subtract what's been destroyed. They only register what's being built. This time may be different. The $200 billion tab for rebuilding will stimulate the economy in the short run, but we don't have a clue how we're going to pay for it. Worse yet, consumers hit by high energy prices are likely to slash their spending. That means a slower economy...

//www.prospect.org/web/view-web.ww?id=10359


Informant: Thomas L. Knapp
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