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The broken trailer fallacy: seeing the unseen effects of government policies in post-Katrina New Orleans

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Listed:
  • Stringham, Edward
  • Snow, Nicholas

Abstract

Purpose – The purpose of this paper is to analyze some of the unseen negative effects of the post-Katrina government policies dealing with housing in New Orleans. Design/methodology/approach – Since Hurricane Katrina, the government, along with private for profit and not-for-profit organizations, has worked to rebuild the city of New Orleans. This effort is most evident in the response to the housing crisis that followed the storm. The government has spent billions of dollars and brought thousands of people in to rebuild homes and other infrastructure in the long run and to provide stopgap measures in the short run. The approximately 120,000 Federal Emergency Management Agency (FEMA) trailers in the region are one of the most visible examples of government efforts. Findings – The paper finds that while the trailers did provide benefits to those who received them, it could be argued that the government’s policies aimed toward solving the housing crisis suffer from Fre´de´ric Bastiat’s broken window fallacy. FEMA trailers and the multitude of workers brought in are examples of what is seen, and, as Bastiat showed, we must also look at what is unseen.

Suggested Citation

  • Stringham, Edward & Snow, Nicholas, 2008. "The broken trailer fallacy: seeing the unseen effects of government policies in post-Katrina New Orleans," MPRA Paper 26099, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:26099
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    File URL: https://mpra.ub.uni-muenchen.de/26099/1/MPRA_paper_26099.pdf
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    References listed on IDEAS

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    1. Catherine Eckel & Philip J. Grossman & Angela Milano, 2007. "Is More Information Always Better? An Experimental Study of Charitable Giving and Hurrican Katrina," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 388-411, October.
    2. Sam Whitt & Rick K. Wilson, 2007. "Public Goods in The Field: Katrina Evacuees in Houston," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 377-387, October.
    3. William F. Chappell & Richard G. Forgette & David A. Swanson & Mark V. Van Boening, 2007. "Determinants of Government Aid to Katrina Survivors: Evidence from Survey Data," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 344-362, October.
    4. Craig E. Landry & Okmyung Bin & Paul Hindsley & John C. Whitehead & Kenneth Wilson, 2007. "Going Home: Evacuation‐Migration Decisions of Hurricane Katrina Survivors," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 326-343, October.
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    Cited by:

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    2. Llewellyn H. Rockwell, Jr. & Walter E. Block, 2010. "The Economics and Ethics of Hurricane Katrina," American Journal of Economics and Sociology, Wiley Blackwell, vol. 69(4), pages 1294-1320, October.

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    More about this item

    Keywords

    United States of America; Natural Disasters; Man-Made Disasters; Floods; Economic Theory;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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