What’s the right lesson to draw from the fraud on FEMA?

From AP, via the Washington Post:

"The government doled out as much as $1.4 billion in bogus assistance to victims of Hurricanes Katrina and Rita, and was hoodwinked to pay for season football tickets, a tropical vacation and even a divorce lawyer, congressional investigators have found." 

Cato, recycling a piece from last September, takes this as evidence that infrastructure spending should be a local responsibility.  I don't really have much argument with that, but I wonder if the primary lesson isn't simpler:  namely, that government can't do everything well, and if it's going to try to be all things to all people it is bound to screw up the central functions that get lost in the mass of things we could all do without. 

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Posted in Public Policy. Comments Off on What’s the right lesson to draw from the fraud on FEMA?
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