Local hospitals and doctors will often treat Katrina victims even if they can't pay. But this means that communities that have welcomed Katrina refugees will, in effect, be financially punished for their generosity -- something local officials will remember in future crises. (The administration has offered vague, unconvincing assurances that it will do something to compensate medical caregivers. It has offered much more concrete assurances that it will reimburse religious groups that provide aid.)
What's going on here? The crucial point is that President Bush has been forced by events into short-term actions that conflict with his long-term goals. His mission in office is to dismantle or at least shrink the federal social safety net, yet he must, as a matter of political necessity, provide aid to Katrina's victims. His problem is how to do that without legitimizing the very role of government he opposes.
As for the administration's odd insistence on providing public housing instead of relying on the market, The Los Angeles Times reports that Department of Housing and Urban Development officials initially announced plans to issue rent vouchers, then backed off after meeting with White House aides. As the article notes, the administration has "repeatedly sought to cut or limit" the existing housing voucher program.
This suggests that what administration officials fear isn't that housing vouchers would fail, but that they would succeed -- and that this success would undermine the administration's ongoing efforts to cut back housing aid.
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