Government solutions to government problems

Labor's Wayne Swan is trying to pin his record budget deficits on circimstances beyond the control of government, such as the natural disasters in Queensland earlier this year.

Surely he is right. Surely the government can't be blamed for a natural disaster?

Well no, but ...

1. The majority of the damage from the Queensland floods were not caused by natural events. The majority of the damage was likely caused by government incompetence (or perhaps something more sinister) in administering the QLD dam system.

2. It is not morally sound to forcibly confiscate money from people in Western Australia and Victoria, to pay for flood damage in Queensland. Of course, people in Victoria and WA SHOULD help their fellow Australians, but they should do so voluntarily. Further, assurance of Government bail-outs in the event of a natural disaster creates a moral hazard that distorts the insurance market, which could handle the problem alot more efficiently than government.