Are todays tornados and storms adding to the national debt, or cutting into it?

Question

Climber..; I don't have to, really sorry about that, but I live in Phoenix; we don't get tornados, hurricanes, tsunamis, earthquakes, or urban wildfires!! Can you send me a standard one from your area?

I did live in California and Alaska, but rented rooms and apartments while working there. I am really clueless about disaster insurance of any kind, but I think that is a good thing, because I can't fall back on insurance while I develop my structural strap-netting systems for buildings, meaning I don't hold back on any aspect of them. I made sure all segments of both the strap-nets and the accessorized frames worked 100%, before announcing and introducing them.

Thanks for that reference.

Answer 1

Good question....

If we keep letting the Federal Government 'blank-check' recoveries, it's adding.  People need to hone up and buy insurance.  But as long as Uncle Sam keeps jumping in and 'saving' those too stupid to prepare for disasters, people will have no incentive to prepare and the cycle will continue to spiral down until the Nanny-State is achieved.

On the flip side, Storms can be seen as a revenue source for Uncle Sam (if they stop paying for all the recovery).  When buildings are destroyed, they must be rebuilt.  That means people will have to work to rebuild.  That means corporate and individual income, which means income tax, which means Federal Revenue.

So, if uncle sam shells out more in 'bailout money' than he garners in tax revenue, then storms add to the debt.  If Uncle Sam can sit on his checkbook and let the free-market economy work the way it should, then the answer would be cutting into it.

While you are thinking about it, review your insurance policies and see what is / is not covered with respect to storms!

Answer 2

Yes, of course.  Everytime an area is declared a disaster area,  infrastructure has to be rebuilt.  This costs money.