Should we pay Nicholas Cage’s flood insurance?

Leave a CommentShould we pay Nicholas Cage’s flood insurance?Commentary

Senator Rand Paul thinks it’s wrong for the government to pay for insurance for movie stars. He believes that if someone like a big Hollywood actor can afford a fancy house, they should also pay for their own insurance. He doesn’t think taxpayers should have to cover the costs for people who are already rich.

Paul has criticized the National Flood Insurance Program (NFIP), which is a federal program that provides flood insurance to property owners, renters, and businesses in participating communities. His argument focuses on the idea that government should not subsidize insurance for wealthy individuals or second homes, particularly those in high-risk flood zones. This stance is part of a broader critique of government intervention in insurance markets, suggesting that such policies encourage risky building practices and unfairly burden taxpayers

Paul wants the government to spend less money and let people handle their own finances, especially if they have plenty of money themselves. In essence, while he acknowledges the need for insurance, including flood insurance for regular people, his approach would shift the responsibility more towards individuals and private markets, with less government involvement and fewer subsidies, aiming for a system where insurance premiums more accurately reflect risk and encourage safer land use practices.