Quoting Thomas Sowell: Reality Isn't Optional
17 March 2006
Editor, The New Orleans Times-Picayune
Dear Editor:
Liz Ary is upset that insurers in areas devastated by Katrina are raising premiums and, in some cases, canceling coverage. And she wants the insurance commissioner "to address these issues" ("Insurance is an obstacle to rebuilding," March 17). While understandable, her dismay is misguided.
Higher premiums, as well as lack of coverage, reflect the reality that certain locations are especially dangerous for homes and businesses. These changes in insurance availability are the market's way of directing people to rebuild in places less prone to destruction by natural disasters. They reflect, rather than determine, reality - a reality that must be faced squarely.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Editor, The New Orleans Times-Picayune
Dear Editor:
Liz Ary is upset that insurers in areas devastated by Katrina are raising premiums and, in some cases, canceling coverage. And she wants the insurance commissioner "to address these issues" ("Insurance is an obstacle to rebuilding," March 17). While understandable, her dismay is misguided.
Higher premiums, as well as lack of coverage, reflect the reality that certain locations are especially dangerous for homes and businesses. These changes in insurance availability are the market's way of directing people to rebuild in places less prone to destruction by natural disasters. They reflect, rather than determine, reality - a reality that must be faced squarely.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Sunday December 3, 2006 at 3:22pm