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Ben Franklin Had the Right Idea for New Orleans
Why is New Orleans in so much worse shape today than New York City was after the attacks on Sept. 11?

The short answer is that New York was attacked by fire, not water. But then why are urbanites so much better prepared to cope with fire than with flooding? Mostly because they learned to fight fire without any help from the Army Corps of Engineers or the Federal Emergency Management Agency.

For most of history, fire was far more feared than flooding. Cities repeatedly burned to the ground. Those catastrophes occurred sporadically enough that politicians must have been tempted to skimp on fire protection - like levee maintenance, it was a long-term investment against a calamity that probably wouldn't occur before they left office.

But urbanites learned to protect themselves through two innovations Benjamin Franklin introduced to America. He started a fire department in Philadelphia, as well as its first fire insurance company. Other cities followed, often with the firefighters organized by insurance companies with a vested interest in encouraging public safety.

Their customers had a vested interest, too, because they had to pay higher premiums if they lived in homes or neighborhoods that were prone to fire. As fire insurance became a standard requirement for homeowners, they and their insurance companies kept pressure on politicians to finance firefighting and tighten building codes.

As a result, the risk of a fire leveling a city like New York is lower than ever. Although the number of fires has dropped so much that experts routinely advise cities to close firehouses, voters' fondness for the stations makes local politicians loath to close any.

But as we've learned this week, few people seem to care passionately about maintaining levees or preparing for a predictable flood. They've left that to Washington, which promised to hold back the waters and absolved coastal dwellers from worrying about hurricanes.

Starting in the 1960's, the federal government took over the business of insuring against floods. It offered subsidized insurance to people in flood-prone areas, encouraging seaside homes that never would have been built otherwise. Even at bargain rates, most people went without flood insurance - only about a third of the homes in New Orleans carried it.

People don't bother to protect themselves because they figure - correctly - that if disaster strikes they'll be reimbursed anyway by FEMA. It gives out money so freely that it has grown into one of the great vote-buying tools of the modern presidency. Bill Clinton set a record for declaring disasters, and then President Bush set the single-state spending record in Florida before last year's election. ...