They presumed that if we told people they were at risk, they would move.

They presumed that over the life of the program, those discounts wouldn't need to be continued.

They presumed they would need to be continued because once people knew they had the risk, they would move out.

That has not proven true.

No, but of course it hasn't, because that's not how people work.

We will gladly accept huge risks to our personal safety for the sake of a discount.

That was the entire premise behind the McDonald's dollar menu.

So what was that all about there, Sean?

It was about the National Flood Insurance Program, which is a program that was put in place once private companies stopped offering people flood insurance.

The government got involved and said, okay, we will help subsidize this and we will give extra money to people in high risk homes that kind of constantly get flooded over and over.

In essence, we'll run an insurance company that will never, ever make money because we will take enormous losses.

Yes.

And the taxpayers will pay the rest of it.

And what that guy was saying was that the program assumed that once the government told, oh, by the way, you're in this high risk place.

Here's the insurance to cover you while you find a new place and then eventually people would move and they wouldn't have to ensure those anymore.

Nobody left.

Did they actually thought that that was crazy to manage the house and not sell it to anybody?

Just take a loss and move on.

It's crazy.

So the government subsidizes living in a flood zone, assuming that'll cause less of it.

What?

Wow.

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