Paul Krugman: The New American Way

PAUL KRUGMAN

09/04/2007 PDT

Two years ago, Americans watched in horror as a great city drowned, and wondered what had happened to their country. Where was FEMA? Where was the National Guard? Why wasn't the government of the world's richest, most powerful nation coming to the aid of its citizens?

What we mostly saw on TV was the nightmarish scene at the Superdome, but things were even worse at the New Orleans convention center, where thousands were stranded without food or water. The levees were breached Monday morning — but as late as Thursday evening, The Washington Post reported, the convention center "still had no visible government presence," while "corpses lay out in the open among wailing babies and other refugees."

Meanwhile, federal officials were oblivious.

"We are extremely pleased with the response that every element of the federal government, all of our federal partners, have made to this terrible tragedy," declared Michael Chertoff, the secretary for Homeland Security, on Wednesday. When asked the next day about the situation at the convention center, he dismissed the reports as "a rumor."

Today, much of the Gulf Coast remains in ruins. Less than half the federal money set aside for rebuilding — as opposed to emergency relief — has actually been spent, in part because the Bush administration refused to waive the requirement that local governments put up matching funds for recovery projects: An impossible burden for communities whose tax bases have literally been washed away.

On the other hand, generous investment tax breaks, supposedly designed to spur recovery in the disaster area, have been used to build luxury condominiums near the University of Alabama's football stadium in Tuscaloosa, 200 miles inland.

But why should we be surprised by any of this? The Bush administration's response to Hurricane Katrina — the mixture of neglect of those in need, obliviousness to their plight, and self-congratulation in the face of abject failure — has become standard operating procedure. These days, it's Katrina all the time.

Consider the White House reaction to new Census data on income, poverty and health insurance. By any normal standard, this week's report was a devastating indictment of the administration's policies. After all, last year the administration insisted that the economy was booming — and whined that it wasn't getting enough credit. What the data show, however, is that 2006, while a good year for the wealthy, brought only a slight decline in the poverty rate and a modest rise in median income, with most Americans still considerably worse off than they were before President Bush took office.

Most disturbing of all, the number of Americans without health insurance jumped. At this point, there are 47 million uninsured people in this country, 8.5 million more than there were in 2000. Bush may think that being uninsured is no big deal — "you just go to an emergency room" — but the reality is that if you're uninsured every illness is a catastrophe.

Yet the White House news release on the report declared that President Bush was "pleased" with the new numbers: Heckuva job, economy!

Bush's only concession that something might be amiss was to say that "challenges remain in reducing the number of uninsured Americans" — a statement reminiscent of Emperor Hirohito's famous admission, in his surrender broadcast, that "the war situation has developed not necessarily to Japan's advantage."

There's a powerful political faction in this country that's determined to draw exactly the wrong lesson from the Katrina debacle — namely, that the government always fails when it attempts to help people in need, so it shouldn't even try.

"I don't want the people who ran the Katrina cleanup to manage our health care system," says Mitt Romney, as if the Bush administration's practice of appointing incompetent cronies to key positions and refusing to hold them accountable no matter how badly they perform — did I mention that Chertoff still has his job? — were the way government always works.

Future historians will, without doubt, see Katrina as a turning point. The question is whether it will be seen as the moment when America remembered the importance of good government, or the moment when neglect and obliviousness to the needs of others became the new American way.

Paul Krugman writes for The New York Times.

Original published September 4, 2007 by Monterey Herald.

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Broadening Katrina’s Lens: A Five-Part Series
Part 1: Broadening Katrina's Lens
Part 2: Recovery’s Two Major Impediments: $$$ and the "F" word
Part 3: The "F" Word: FEMA
Part 4: Katrina’s Bigger Picture
Part 5: Katrina’s Karmic Payback: Insurance Reform
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