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John Stossel of ABC (and later Fox News) has waged a crusade over the years against government flood "insurance" and coastal housing bailouts: http://abcnews.go

John Stossel of ABC (and later Fox News) has waged a crusade over the years against government flood "insurance" and coastal housing bailouts: http://abcnews.go.com/Business/Insurance/story?id=94181 http://abcnews.go.com/Business/Insurance/story?id=94181

woofyman 9y ago
He'd have more credibility if he canceled his government flood insurance. http://crooksandliars.com/news-hound-ellen/john-stossel-just-because-i-take- http://crooksandliars.com/news-hound-ellen/john-stossel-just...
- ericras 9y ago
  That's similar to the criticism that Ayn Rand collected at Social Security check. I think you can stand for a principle while still participating in the current system that you're paying for.
  - antisthenes 9y ago
    My gut idealist wants to disagree with you, but the rational economist in my head is telling me you're correct. We shouldn't hold individually rational (net benefit) decisions against someone's principles.
    - mannykannot 9y ago
      Maybe so, but they can certainly be ignored - and I say that thinking Stossel is correct in his opinion on this matter.
    - sjg007 9y ago
      I think the term you are looking for is "hypocrite".
      - antisthenes 9y ago
        Yeah, if you want to change the definition of the word to suit whatever meaning you intended the insult to have, sure.
        sjg007 9y ago
        Not meant as an insult to anyone... it's just the definition of hypocrisy. If you espouse some belief but act otherwise (e.g. want to eliminate social benefits but then claim them because it is rational or because of the system).. then you are a hypocrite.
        aaron695 9y ago
        No it's not at all. If you believe drugs should be legalised but you won't sell them in public are you a hypocrite? You can want system change and also work within it as it exists.
        sjg007 9y ago
        Your example doesn't make sense. If you believe drugs should be illegal but you use them then you would be a hypocrite. If you believe drugs should be legal and you sell them (in private or public) or even use them then you are not being hypocritical. If you sell then privately but not publically you're not being hypocritical either.
  - r00fus 9y ago
    It does make you look unprincipled and inconsistent however.
- jdeibele 9y ago
  Disagree. If you think somebody (in this case the government) is mispricing something, it's not hypocritical to say "this is mispriced" and still take advantage of it. Is it objectively mispriced? Probably. But we would have to have access to all of the premium received and payouts made by FEMA. https://www.fema.gov/use-flood-insurance-study-data-available-data https://www.fema.gov/use-flood-insurance-study-data-availabl...
  - sjg007 9y ago
    Of course it is mispriced... Large scale cataclysmic damage is just too expensive to insure, just as war is or an act of God is and that is why the government is the insurer of last resort. Ultimately, it will all come out of taxes. The government will bail people out, maybe not at full market value individually but definitely at the bank level. It will be the same dynamic as the 2008 housing crash.

woofyman 9y ago

He'd have more credibility if he canceled his government flood insurance. http://crooksandliars.com/news-hound-ellen/john-stossel-just-because-i-take- http://crooksandliars.com/news-hound-ellen/john-stossel-just...

ericras 9y ago
That's similar to the criticism that Ayn Rand collected at Social Security check. I think you can stand for a principle while still participating in the current system that you're paying for.
- antisthenes 9y ago
  My gut idealist wants to disagree with you, but the rational economist in my head is telling me you're correct. We shouldn't hold individually rational (net benefit) decisions against someone's principles.
  - mannykannot 9y ago
    Maybe so, but they can certainly be ignored - and I say that thinking Stossel is correct in his opinion on this matter.
  - sjg007 9y ago
    I think the term you are looking for is "hypocrite".
    - antisthenes 9y ago
      Yeah, if you want to change the definition of the word to suit whatever meaning you intended the insult to have, sure.
      - sjg007 9y ago
        Not meant as an insult to anyone... it's just the definition of hypocrisy. If you espouse some belief but act otherwise (e.g. want to eliminate social benefits but then claim them because it is rational or because of the system).. then you are a hypocrite.
        aaron695 9y ago
        No it's not at all. If you believe drugs should be legalised but you won't sell them in public are you a hypocrite? You can want system change and also work within it as it exists.
        sjg007 9y ago
        Your example doesn't make sense. If you believe drugs should be illegal but you use them then you would be a hypocrite. If you believe drugs should be legal and you sell them (in private or public) or even use them then you are not being hypocritical. If you sell then privately but not publically you're not being hypocritical either.
- r00fus 9y ago
  It does make you look unprincipled and inconsistent however.
jdeibele 9y ago
Disagree. If you think somebody (in this case the government) is mispricing something, it's not hypocritical to say "this is mispriced" and still take advantage of it. Is it objectively mispriced? Probably. But we would have to have access to all of the premium received and payouts made by FEMA. https://www.fema.gov/use-flood-insurance-study-data-available-data https://www.fema.gov/use-flood-insurance-study-data-availabl...
- sjg007 9y ago
  Of course it is mispriced... Large scale cataclysmic damage is just too expensive to insure, just as war is or an act of God is and that is why the government is the insurer of last resort. Ultimately, it will all come out of taxes. The government will bail people out, maybe not at full market value individually but definitely at the bank level. It will be the same dynamic as the 2008 housing crash.