"I'll grant that there are cases where there are underfunded public goods such that economic efficiency would be enhanced with respect to those projects by government funding."

"I think this disaster is a fine example that these private contributions often greatly exceed the predictions of our economic models."
Gil

Private contributions alone, without some government expediture on infrastructure, would be woefully inadequate, and New Orleans would not be rebuild. That would be a shame.

Polls suggest that most Americans do want the non-flood- prone areas to be rebuilt, probably suggesting that most people would be willing to vote to contribute if they knew that their neighbor was contributing as well, provided that the goverment exercised a modicum of fiscal responsibility. Given that there is political support for government intervention and given that there is theoretical justification for some government investment, particularly in infrastructure; some areas of New Orlean should be rebuilt. But the primary source of funding should be individual private investors.

I truly doubt, however, that most Americans would support spending 250 billion (!) dollars on rebuilding, including 8 million for alligator farms.

That is a shame.

Michael Golding