As the Northeastern portion of the United States prepares to be rocked by Hurricane Irene, analysts are already predicting the potential financial impact of the storm on the already struggling American economy. As Irene follows a path similar to that of Hurricane Bertha in 1995 and Hurricane Floyd in 1999, experts are comparing the potential damage and costs to those storms. Bertha cost $371 million worth of damage nationwide, while Floyd accumulated $4.5 billion. Some lawmakers contend, however, that regardless of the expected damage, Americans do not need the Federal Emergency Management Agency (FEMA).
GOP Presidential candidate Ron Paul, for example, contends that there should be no FEMA response to Hurricane Irene and that federal disaster relief is “bad economics, bad morality, and bad constitutional law.”
“There’s no magic about FEMA. They’re a great contribution to deficit financing and quite frankly they don’t have a penny in the bank. We should be coordinated but coordinated voluntarily with the states. A state can decide. We don’t need somebody in Washington,” he said.
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