#2: The Over-Federalization of Disasters Makes Everyone Worse Off Whenever hurricane season begins, there are often multiple calls for Congress to adopt a catastrophic hurricane fund (CAT fund). This fund is the ultimate in public options—and would provide government insurance to homeowners and businesses in the most disaster prone regions. But placing more federal dollars or resources in this manner will make everyone worse off. Not only does it force taxpayers from around the country to subsidize those who choose to live in these regions, it also provides a disincentive …
