Funds not free
The April 1 column, “Catastrophe fund would aid victims,” is worthy of consideration.
However, one assertion buried in the piece stopped me cold: “Because the fund is financed through private insurance premiums, it provides protection without tapping the public or taxpayers.” I immediately stopped to see if the authors were current or former government employees who assumed that all money belongs to the government until doled out to recipients. Then, when it is passed on to recipients it is “free money.”
Sure enough, both co-authors had previous government careers. Did they assume that insurance companies would not pass the funding costs on as part of premiums? Did they think that insurance companies and their customers were not taxpayers?
Sorry folks! There are no free lunches, only other people’s money. The problem with this kind of thinking is that it eventually creates a system that only works until you run out of other people’s money.