Ordinary Americans discovered quite a bit about themselves in
the aftermath of the September terrorist attacks. Selfless
and self motivated, individuals and families took the initiative,
seized the moment, and organized themselves into a fearsome relief
force that locked arms with strangers to save lives and comfort the
distressed. They also discovered an extraordinary capacity
for sacrifice -- of time, of money, and of lives. By the end
of October, private contributions to disaster relief exceeded $ 1
billion.[2]
But they also discovered a lot about some of their government
leaders, and probably more than they wanted to know about
Washington's peddlers of influence and favor, many of whom saw the
calamitous events as an opportunity to profit from catastrophe by
wrapping themselves in the flag, or posing as victims. Where
ordinary Americans saw the terrorist attack as a challenge
demanding a sacrifice of themselves for the good of others, many of
Washington's elites saw an opportunity to sacrifice others for the
good of themselves, or of their influential constituents.
Several of the Washington DC area officials were quick to prove
they weren't cut from the same cloth as the hundreds of fireman who
dug through the debris of the shattered Pentagon, or the dozens of
local school children who made sandwiches for those rescue workers
and, with their moms, delivered them to the crash site. With
as much as half of the $40 billion federal rescue package dedicated
to disaster relief for Pennsylvania, New York and Virginia,
Congressman Jim Moran (D-VA), who represents the Virginia suburbs,
exclaimed "It's an open grab bag, so let's grab." Virginia's
Governor Gilmore responded accordingly and asked for more than $3
billion, a sum that also includes transportation infrastructure
spending unrelated to damage from the terrorist assault.[3]
One state transportation official
hopes that some of the money can be used to start the $3 billion
proposed light rail line connecting the Virginia suburb of Falls
Church with Dulles airport, eight miles away.[4] In the assault's
aftermath, local rail buffs argued the line could help evacuate
Washington, DC, a need that last occurred in 1814 when the British
attacked the city and set fire to the Capitol and White
House. The idea here, one supposes, is that in a similar
emergency hundreds of thousands of workers will hop a train to
Virginia and transfer to another heading for the airport.
Once there, well-to-do evacuees would presumably have the
opportunity to fly to remote hideaways, while those of more modest
means could mill around the long-term parking area until the all
clear siren sounds.
Although the federal relief package offered no dedicated set
aside for the city of Washington DC because it incurred no direct
damage, local officials were undeterred in their pursuit of money.
Mayor Williams of the District of Columbia first showed a rare and
commendable measure of restraint when he asked for $150 million in
federal aid, but the City Council wanted more. Republican
Councilwoman Carolyn Schwartz demanded of Mayor Williams: "We
should be asking for billions with a B. I would run
and grab as much as you can legitimately get…" [5] which the Mayor
proceeded to do by upping the request to $900 million.[6] Included were
millions of dollars for the DC fire department, an understandable
request given the embarrassing allegations that some DC
firemen had stolen costly high tech equipment from a Virginia fire
department while both fought fires at the Pentagon.[7]
Not to be outdone, New York's Governor George Pataki wants $54
billion for relief in his state, more than two and a half times the
$20 billion Congress and the President set aside for the three
states where planes crashed. Although a majority of the
Governor's request is said to be for direct disaster relief and
damage repair, about $20 billion is being requested for economic
stimulation and state-wide transportation projects, including a new
high speed rail line connecting Schenectady, NY with New York
City.[8]
Perhaps for reasons related to the warm and comforting sense of
nostalgia that chugging trains evoke during days of stress and
adversity, many of these requests illustrate the surprising extent
to which passenger rail spending proposals are very much in vogue
this year as objects to receive disaster relief, economic
stimulation and/or defense security. Early on Senator Harry
Reid (D-NV) was flogging a package of spending that included $12
billion for Amtrak, and another billion or so dollars to start up
"magnetic levitation" rail service between Las Vegas and Los
Angeles.[9] Senator Fritz
Hollings (D-SC) introduced the Railroad Advancement and
Infrastructure Law for the 21st Century (aka RAIL-21)
which proposes to provide Amtrak with an additional $4.4 billion in
up front cash subsidies and $42 billion of federal loans.[10] It also
encourages Amtrak to become perpetually dependent upon federal
handouts by eliminating entirely the existing statutory
obligation that Amtrak become financially self-sufficient, an
objective that nearly 2 million former welfare families have met
over the past few years, but which has escaped the grasp of
Amtrak's management since 1970.
Encouraging these and similar budget busting rail proposals are
the tens of thousands of rail hobbyists who saw the terrorist
attack as an opportunity to secure the survival of their costly
obsession, now facing the imminent prospect of insolvency because
of operating losses that have worsened year after year, and a
market penetration rate that hovers around a one half of one
percent share of all intercity passengers.
Within two days of the attack, the National Association of
Railroad Passengers (NARP), an Amtrak support group, e-mailed
members that "The tragedy and its aftermath raise the possibility
that more Americans will see the need for more modern passenger
trains. We will be pointing this out."[11]
Apparently, Americans did not see it as quickly or as clearly as
NARP hoped, because Amtrak was not included as part of the airline
bailout despite its best efforts to squeeze into a place at the
trough. Moreover, Amtrak's efforts to portray itself as a
safer form of travel was also largely ignored by the traveling
public because Amtrak's September 2001 ridership actually fell from
year ago levels, and October's was up only slightly. So
NARP's next e-mail tried to make things clearer with the perversely
accurate assertion that "Amtrak took on unusual importance right
after the tragedy." Unusual was certainly a fitting description of
its special role that day: Within hours of the attack, Amtrak
trains scheduled to leave Washington, D.C., as well as those of the
Amtrak-operated Virginia Railway Express, were canceled, stranding
more than 5,000 commuters in a city under terrorist attack.
According to press reports, it was this multitude of costly
Amtrak bailout proposals that led Office of Management and Budget
Director Mitch Daniels to ask sarcastically: "Why not? The
fences are down and everyone is running loose."[12]
Amtrak, of course was not the only transportation industry to
seek tax payer money for the good of the country. As congressional
focus shifted from helping victims - real and feigned - to
stimulating the economy, elected officials, trade associations and
unions discovered new opportunities to loot the federal treasury.
The Associated General Contractors and state highway officials
urged Congress to support Senator Jim Jeffords' (D-VT) proposal to
spend an additional $5 billion on highways, and identified 2,277
projects that could be started within 90 days. Highway
supporters claimed that each billion dollars spent on roads would
create 42,000 new jobs.[13]
The road builders' job creation claim was nearly twice the
magnitude of what the teachers' union promises from building new
schools. In seeking an additional $20 billion in new federal
spending for school construction, the National Education
Association (NEA) argued that each billion dollars invested in
school construction would create just 24,000 jobs.[14] Note to
NEA: Get an new accountant.
Also seeking an extra $5 billion in taxpayer money to stimulate
the economy through subsidized construction is the National Low
Income Housing Coalition whose membership includes for-profit
developers and builders as well as advocacy groups. The
Coalition wants this money allocated to HUD's HOME program for
housing construction and preservation.[15]
Amtrak and road builders weren't the only transportation
industry seeking support. Although scheduled bus service initially
received a boost from passengers shifting from planes, the American
Bus Association claims that the "U.S. motorcoach industry is in the
midst of an economic crisis." Bus owners are now asking Congress
for a grant program, low-interest loans, tax credits, repeal of the
federal fuel tax, and a new government program to promote
tourism.[16]
Not to be outdone by their bus industry rivals, some (but not
all) of the car rental companies are seeking $1.5 billion in
federal assistance to offset losses caused by reduced travel.[17] Even Washington DC's
subway system wants in on the money, and is asking Congress for
$190 million to boost security, including a back up command center
costing $40 million.[18]
Travel agents, too, want an expensive piece of the action, and
used the opportunity to display their overblown sense of
self-importance when the American Society of Travel Agents (ASTA)
declared, "Without travel agencies, the nation's travel industry
cannot function." ASTA is seeking $4 billion in grants and
no-interest loans.[19]
National security concerns were also used to help advance a $171
billion farm subsidy bill that insiders had thought would be
defeated because of its budget-busting impact. As currently
written, this legislation would spend $74 billion more on farmers
than would otherwise have been spent under existing law, despite
the fact that farm income this year is expected to be at an
all-time high. Supporters now contend that "terrorist attacks
have bolstered the argument that food production is a vital
national interest." Apparently unaware that the terrorist attacks
were confined to urbanized areas, trade associations representing
the growers of more than 20 federally subsidized agriculture
commodities wrote Congress on September 24 that "farmers, like
other industries that Congress has helped since the terrorist
attacks, are suffering economically."[20]
Introduced in July as the Agriculture Act of 2001, the bill was
renamed the Farm Security Act of 2001 shortly after the September
11 attacks. The name change apparently fooled enough House
members into passing it by a vote of more than 2 to 1. Included in
the bill is a provision to provide $3.5 billion in subsidies to the
nation's peanut farmers, who until now had never been included in
the government's crop price support programs. Attempting to
squelch any doubts about whether Mr. Peanut was really ready for
war, Rep. Terry Everett (R-AL), who sponsored the peanut provision
and who, as a peanut farmer, stands to profit from the bill, told
colleagues that "The bipartisan Farm Security Act provides a strong
safety net… and strengthens America's national security."[21]
Whereas most lobbyist wanted money, elected representatives from
steel-producing states pandered to America's troubled steel
industry by demanding further restrictions on imports of less
costly foreign steel. In defending the urgency of such
restrictions, one steel-state Senator said, "Without steel, we
cannot guarantee our national security. Without steel, we cannot
build from our tragedy."[22] How
these objectives would be reached by policies that create shortages
and raise prices was never explained, but that same mystery is
probably behind Senator Jeffords' effort promoting economic
stimulus by getting Congress to reauthorize the Northeast Dairy
Compact. Jeffords' Compact would re-create a dairy farmer
cartel and impose higher milk prices on families living in New
England and New York, just as unemployment soars.[23]
Confronting these and similar requests from the well heeled and
the well off, one can only wonder how it is that the same country
that produced the New York City firemen and policemen could also
produce some of the members of the 107th Congress and
the shameless lobbyists that swarm around the Capitol. In an
earlier Heritage report on the same subject, members of
Congress were urged to ask themselves, before each disaster-related
decision: "Am I serving my country as well as the New York fireman
and policemen served their city?"[24] Judging
by how few of these irresponsible requests have made it into actual
legislation, most elected officials have been inspired by the
sacrifice of others.
And so too have many business groups that stood up to pressure
to join the melee for whatever could be grabbed. The trade
association representing hotels and motels was one such
organization whose response to such pressure is worthy of
emulation. While some members wanted the association to seek
a bailout, others demurred, and stated " While the lodging industry
has been negatively impacted to a severe degree, (the industry)
realizes that the country's needs as a whole greatly outweigh the
needs of any one specific industry. Right now the country
needs patriots, not profiteers."[25] Hear,
hear.
Ronald D. Utt,
Ph.D., is a Senior Research Fellow in the Thomas A. Roe
Institute for Economic Policy Studies at The Heritage
Foundation.