3. Money To Burn

The government, at various levels, is concerned with how to channel aid to riot-damaged areas. It also is considering programs to induce or compel (or substitute for) private insurance companies to insure property and businesses in areas in which riots have broken out and may again break out.

The intention—to help riot victims—is laudable; nonetheless such efforts would also help, or even subsidize, rioting, and thereby produce more riot victims. Further, if the Federal Government hands out subsidies, local authorities will see their liability to riot victims reduced. Ambitious politicians thus may, at times, be induced to let property be destroyed instead of protected: it may enhance their popularity with the group bent on destruction—and the Federal Government will compensate the owners of the destroyed property.

EH

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Ernest van den Haag

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The government, at various levels, is concerned with how to channel aid to riot-damaged areas. It also is considering programs to induce or compel (or substitute for) private insurance companies to insure property and businesses in areas in which riots have broken out and may again break out.

The intention—to help riot victims—is laudable; nonetheless such efforts would also help, or even subsidize, rioting, and thereby produce more riot victims. Further, if the Federal Government hands out subsidies, local authorities will see their liability to riot victims reduced. Ambitious politicians thus may, at times, be induced to let property be destroyed instead of protected: it may enhance their popularity with the group bent on destruction—and the Federal Government will compensate the owners of the destroyed property.