Evidently, the national flood insurance program is about $19 billion in debt. Apparently not only did they not figure out that there was a reason insurance companies were charging high rates for flood insurance in many areas, they also didn't bother to hire any good actuaries to figure out what the proper rate ought to be.
It's as if people will be more likely to live in a flood plain if you subsidize their house insurance or something, and that change in behavior will tend to bankrupt the subsidy program.
Memo to Congress; incentives matter!
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