I'm listening to C-Span2 right now. Sen. Byron Dorgan (D-ND) is telling of how FEMA botched ice delivery after Hurricane Katrina. He is showing a photo of trucks lined up at an Air Force Base in, I believe, Alabama. The truck drivers were told to pick up ice in New York and bring it to Alabama by way of Missouri. Once there, they waited 12 days at that Air Force Base. Then, inexplicably, they were told to deliver their ice to Massachusetts. Cost: $15,000. (Note: It was not clear if he meant that this was per truck or for the whole lot. I have to believe that the opportunity cost of a truck sitting still for 12 days could easily exceed $15,000 as well--especially in a disaster area--so chalk this up as an example of people not being clear about the full cost of something.)
A local sheriff who tried to commandeer the trucks to get the ice to the victims of Katrina is now being prosecuted for his efforts.
I'm sure this will appear in the Congressional Record in case you want to read Dorgan's precise telling of the tale. It sounds unbelievable, but a lot of unbelievable things happened after Katrina. I'm prepared to take Dorgan at face value on this one.
The old Soviet central planners would be proud. Here's a crazy idea: Let the price of ice rise to induce people to transport it and sell it in the affected area. Concerned that the poor wouldn't be able to buy the ice (price gouging)? Let the government buy the ice at the going price and distribute it at the shelters. I honestly think it would be less costly than what happened here.
And they would get ice.
And they would get ice.
Such an optimist!