“It would be hard to devise a surer formula for economic catastrophe.”
It may not be in a debacle like California’s, but I still find it galling to see my home state of Florida go from being one of the best governed states in the country to leading the nation in a particularly destructive sort of fiscal insanity. But if the first step toward a cure is an accurate diagnosis, The Economist is helping on that count. As the current issue notes:
Two years ago, after homeowners complained about rising insurance premiums, the governor, Charlie Crist, leaned on firms to cut prices and offered Floridians state-subsidised policies. Private insurers curtailed their operations or pulled out. When the next hurricane hits, the repair bill will land squarely on Floridian taxpayers, rather than being spread among global insurers. It would be hard to devise a surer formula for economic catastrophe.
By the time such a storm hits, Crist may be in the Senate. Expect him then to try to steer federal dollars to clean up the mess he helped create.
For more on state-subsidized insurane, see here.