The Surprising Shortage of FEMA Funds

Political and Economic Policies

There is a shared sentiment that both sides of the political spectrum have mismanaged our fiscal and monetary policies. The current monetary policy, a variant of Keynesian economics implemented by the Federal Reserve, relies primarily on the printing of money. The hope is that this will not lead to hyperinflation or an economic collapse. While Republicans occasionally voice criticisms about the Federal Reserve and our abuse of the dollar, they ultimately support the current monetary policy. Democrats, on the other hand, seem to have convinced themselves that basic economic principles such as supply and demand no longer apply.

Fiscal Policy and National Debt

When it comes to fiscal policy, Democrats are often seen as the main culprits. Republicans have traditionally aimed to curb spending and reduce the size of government, while Democrats usually advocate for a larger government and increased spending. However, there have been exceptions, such as when former President Bill Clinton balanced the budget and former President Donald Trump ran some of the largest deficits in the country's history. Regardless of how one views it, the nation's debt has been increasing at an alarming rate. In just the last month, the United States added over $300 billion to our national debt, which is now nearing $36 trillion. Despite our attempts to balance the budget, we consistently spend more than we earn, both at the individual and national level.

The FEMA Funding Crisis

In the wake of Hurricane Helene, the Federal Emergency Management Agency (FEMA) announced that it does not have sufficient funds to endure the hurricane season. Homeland Security Secretary Alejandro Mayorkas warned that FEMA is running low on funds and may not be able to make it through the season. Mayorkas did not specify the exact amount of funding needed, but his comments echo concerns from President Biden and lawmakers that a supplemental spending bill may be necessary this fall to support recovery efforts.

Government Spending and Mismanagement

Over the past four years, millions of people have crossed the southern border unchecked and have been treated generously by the Biden administration. At the same time, everyday citizens are grappling with rising prices, deteriorating infrastructure, and the negative effects of excessive regulation. The United States has also allocated nearly $50 billion in foreign aid, primarily to Ukraine, while pressuring waitstaff, Uber drivers, and anyone using Venmo for more than $600 for tax receipts. The government's financial management has been called into question, especially when it comes to allocating funds for things like border security in Jordan, Lebanon, Egypt, Tunisia, and Oman, and family planning to halt population growth that "threatens biodiversity or endangered species".

The Implications of FEMA's Financial Shortage

The fact that FEMA is short on funds is not only concerning because of the hundreds of billions of dollars we have wasted on things that do not directly impact everyday U.S. citizens. It is even more alarming when considered in the context of our country's monetary policy. In the past, government entities had to rely on revenue from taxpayers because we could not simply print money indefinitely. Those days of sound money are long gone. Now, in an era where we can theoretically print unlimited fiat dollars, our domestic agencies still do not have the minimum necessary funds to assist the American people when needed.

Monetary Policy and FEMA's Financial Situation

If money is all imaginary and we can create as much of it as we want without any consequences, as both political parties have suggested over the past several decades, FEMA should never have to request more money to aid hurricane victims. The solution is not to increase taxpayer contributions or to spend less on other nonessential things. The solution is simply to adjust a few decimal places on an Excel spreadsheet, likely at the New York Federal Reserve, and then at the Treasury Department, and then press a button.

Bottom Line

This approach to monetary policy is deeply troubling and could lead to disaster for the country. It is even more distressing to realize that we do not even have the decency to make a hollow gesture to replenish FEMA's bank accounts before the nation goes bankrupt and at least pretend to care about our own citizens. What are your thoughts on this issue? Do you agree with the points raised in this article? Feel free to share this article with your friends and let them know about the situation. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.