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The Manhattan Institute’s Steve Malanga breaks down whether the government can afford aid for storm victims.
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-- governor Andrew Cuomo is about to ask the federal government now for thirty billion dollars in the -- for New York.
-- US government even afford this well joining us now -- the lined up from the Manhattan.
Thirty billion dollars some would say this is actually a bailout -- this -- -- -- -- a drop in the bucket.
Well I mean if not a valid insofar as there's and as you can see there's a real heartache.
But we're in a situation where number one the states are basically historically particularly in this region -- just the broke.
Tax revenues were below where they were in 2008 the cost -- continue rising.
Places like New Jersey -- not funding their pensions are still at this particular point.
And now they have this.
And that and plus you have a federal government which in a way they're kind of leaving this whole area behind that -- -- with the talk -- federal government after the election is of course the fiscal cliff and how much do we cut.
You know in in order to avoid you know in order just kinda like deal with -- this federal deficit so.
-- thirty billion dollars this kind of a drop in the bucket when you think of a one trillion dollar federal deficit.
I'm because -- -- -- no way for New York Gary did that that do you think New York needs all thirty billion to address and you would they be able to say siphon off some of it to me some of these other dire -- Well America a lot of that thirty billion that they're talking about -- money but not would go to to people.
Who have -- lost their homes and things like that the problem is the right now.
That neither state is in a position to do the kinds of things to invest the kinds of things like an infrastructure to prevent this from happening again.
Even though there were warnings about this going registered this guy with Elizabeth MacDonald talk about the federal government not ruling Leno.
Being able to react quickly enough just by the way it's structured doesn't this argue for -- the idea that we should stop sending so much money in a war on Washington DC I mean you think about how much money.
People in new York -- New Jersey send to DC every year.
What had just been smarter just to keep some of that money at home so we can react to these kind of prices -- faster here's the thing some reason.
The reason that people call for an agency like FEMA is that unfortunately what.
What we do keep the money home.
We don't spend it on these kinds of things so New York in New Jersey have squandered a lot of money on aren't essential infrastructure they ignored calls to do things in the New York Harbor that would have protected so that's part of the problem is that we're not very.
A responsible here in this area either but but also Steve.
When they send the money -- federal government it comes back.
They squander it -- they use it to fill budget gaps they don't use the money in a preventative manner.
And then we have this problem would infrastructure the real infrastructure problem is responsibility by the politicians.
At the local level.
And nobody hands out ribbons or rewards if you do things like build storm surge barriers instead -- and that ribbons rewards when you do things like -- and then -- yeah.
900 million of sequestration -- right so essentially what you're saying Steven that we can't trust the local authorities because they'll -- by both built have to -- both of them money.
Instead of using if the right thing but that everyone after the fact I can demand after the fact but we've already got live there -- slot.
President --
