Krugman: Will Bush Deliver?

Will Bush Deliver?
By Paul Krugman
The New York Times

Monday 10 October 2005

Ever since President Bush promised to rebuild the Gulf Coast in "one of the largest reconstruction efforts the world has ever seen," many people have asked how he plans to pay for that effort. But looking at what has (and hasn't) happened since he gave that speech, I'm starting to wonder whether they're asking the right question. How sure are we that large-scale federal aid for post-Katrina reconstruction will really materialize?

Bear with me while I make the case for doubting whether Mr. Bush will make good on his promise.

First, Mr. Bush already has a record of trying to renege on pledges to a stricken city. After 9/11 he made big promises to New York. But as soon as his bullhorn moment was past, officials began trying to wriggle out of his pledge. By early 2002 his budget director was accusing New York's elected representatives, who wanted to know what had happened to the promised aid, of engaging in a "money-grubbing game." It's not clear how much federal help the city has actually received.

With that precedent in mind, consider this: Congress has just gone on recess. By the time it returns, seven weeks will have passed since the levees broke. And the administration has spent much of that time blocking efforts to aid Katrina's victims.

I'm not sure why the news media haven't made more of the White House role in stalling a bipartisan bill that would have extended Medicaid coverage to all low-income hurricane victims - some of whom, according to surveys, can't afford needed medicine. The White House has also insisted that disaster loans to local governments, many of which no longer have a tax base, be made with the cruel and unusual provision that these loans cannot be forgiven.

Since the administration is already nickel-and-diming Katrina's victims, it's a good bet that it will do the same with reconstruction - that is, if reconstruction ever gets started....