As a taxpaying American, I oppose the creation of a government-run national catastrophe backstop. As a taxpaying American, I don’t think our government should be subsidizing insurance for million dollar beach houses. I oppose the creation of a government-run national catastrophe fund. Much of our country's past economic success resulted from the ability of individuals and companies to purchase insurance--including catastrophic risk insurance--in a free-market system that provided actuarially-sound insurance rates. When the government interferes with the price signals of the market to mandate a certain insurance rate, it creates shortages or surpluses. In the case of catastrophic risk insurance, this could spell disaster for millions of homeowners and taxpayers.

The state government of Florida, for example, has foolishly made these exact mistakes by interfering with market processes. By keeping insurance premiums below market rates, the state government has encouraged the building of homes in hurricane-prone areas. Many of these subsidies have gone to wealthy celebrities who have foolishly built lavish mansions on Florida's beaches. The state's government-run insurance company, along with other companies, will soon be paying out billions of dollars in insurance claims in the coming months for these individuals, and the state will be taxing prudent, hard-working, homeowners to cover the costs of these reckless beachhouse residents.

If a state government has created this kind of problem by arrogantly assuming that it knows how to better run the insurance industry than the free market, that is the state’s problem. State taxpayers should be infuriated at the hubris of these politicians, and they should be sure to send their message of disapproval in the voting booth.

Unfortunately, in the meantime, some of these state politicians are now begging for a federal government bailout to cover their mistakes at the American taxpayer's expense. As a taxpaying American, I am sending a message to my elected representatives now--before it's too late--that I do not want the federal government to bailout celebrity beachhouse owners or foolish state politicians with my money.

Bailouts delay natural corrections to unsound business practices. In the long run, bailouts do not "rescue" anyone because they stall the adoption of necessary reforms that would prevent future repeats of bad choices.

No beachhouse bailouts. Not with my tax dollars.