Sen. John Kennedy (R\u2013La.) is upset because Sen. Rand Paul (R\u2013Ky.) wants to limit federal flood insurance.<\/p>\n

But Paul is right. In my new video<\/a>, Paul says, “[It] shouldn’t be for rich people.”<\/p>\n

That should be obvious. Actually, federal flood insurance shouldn’t be for anyone. Government has no business offering it. That’s a job for the insurance business.<\/p>\n

Of course, when actual insurance businesses, with their own money on the line, checked out what some people wanted them to insure, they said, “Heck no! If you build in a dangerous place, risk your own money!”<\/p>\n

Politically connected homeowners who own property on the edges of rivers and oceans didn’t like that. They whined to congressmen, crying, “We can’t get insurance! Do something!”<\/p>\n

Craven politicians obliged. Bureaucrats at the Federal Emergency Management Agency even claim they have<\/em> to issue government insurance because, “There weren’t many affordable options for private flood insurance, especially for people living in high-risk places.”<\/p>\n

But that’s the point! A valuable function of private insurance is to warn people away from high-risk places.<\/p>\n

But instead of heeding that warning, politicians said, “Don’t worry. Since private companies won’t insure you, we will.”<\/p>\n

Of course, the politicians claimed they’d price the insurance properly so they wouldn’t lose taxpayer money.<\/p>\n

“We must [do] everything we can to protect taxpayer dollars.” said then-Sen. Wayne Allard (R-Colo.).<\/p>\n

But Paul points out, “Like most things in government, they continue to lose money.”<\/p>\n

So far, the government lost $36 billion of your money.<\/p>\n

Yet they still insure people who can’t get private insurance.<\/p>\n

Kennedy thinks that’s fine. “The first role of government is to protect people and property,” he shouts from the Senate floor. “I thought this is what libertarians believe.”<\/p>\n

No, Senator, we believe government should protect our right to life, liberty, and the pursuit of happiness, and then leave us mostly alone.<\/p>\n

By insuring risky property, Paul points out, “You’re actually doing the opposite of what you would think government would want to do; you’re promoting bad behavior.”<\/p>\n

Exactly.<\/p>\n

Years ago, federal flood insurance encouraged my bad behavior.<\/p>\n

I wanted to build a house on a beach. When I asked my father to help with the mortgage, he said, “No! Are you crazy? It’s on the edge of an ocean!”<\/p>\n

Dad was right. It was a dumb place to build. But I built anyway, because federal flood insurance, idiotically, guaranteed that I wouldn’t lose money.<\/p>\n

I enjoyed my house for ten years, but then, as predicted, it washed away<\/a>.<\/p>\n

It was an upsetting loss, but thanks to Uncle Sam, I didn’t lose a penny.<\/p>\n

I’m grateful. But it’s wrong that you were forced to pay for my beach house.<\/p>\n

Paul is right to say that people with second homes “should not get insurance through the government.”<\/p>\n

Actually, no one<\/em> should get flood insurance through the government, but Paul fears that his irresponsible colleagues won’t approve killing the handout altogether. Instead, he just proposes limiting the handout to primary residences.<\/p>\n

It would be a start.<\/p>\n

But even this slight reform is too much for Kennedy, who says, “If you earn enough to buy a second home, we shouldn’t discourage that.”<\/p>\n

No, we shouldn’t.<\/p>\n

But we shouldn’t subsidize <\/em>it with taxpayer money!<\/p>\n

Doesn’t he get the difference?<\/p>\n

Federal flood insurance is like buying drunk drivers new cars.<\/p>\n

Adding to the idiocy, there is no limit on how many times the government will give away your money.<\/p>\n

“One home in Virginia,” says Paul, “they’ve rebuilt the house 41 times!”<\/p>\n

I took your money once. I apologize for taking it, but when my government offers me a handout, I feel stupid not<\/em> taking it.<\/p>\n

Let’s get rid of federal flood insurance and all subsidies that encourage people to do foolish things.<\/p>\n

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