We find it discouraging that even members of the administration are pessimistic about the future of broader economic reform pushed earlier this year. US Treasury Snow, like many in Washington, is wary of pushing economic reform during such a sensitive time.

"It’s taken over the national agenda and I think it will for a while," Snow said of Katrina. "I think it will push to the back burner some issues that otherwise would have been on the agenda now -- the estate tax, tax (cut) permanency, GSEs and other things."

While we understand the seriousness of Hurricane Katrina, we also see the benefit of ensuring American prosperity continues in her wake. A more robust economy is better able to handle such massive blows as Katrina and move on more quickly

Over at NRO, Mallory Factor explains why a healthy economy is the best aid the government can provide:

We are now committed as a country to generously and compassionately rebuilding the hurricane zone and replacing what was lost. The price tag will be high, perhaps as high as $200 billion. That’s real money, and we need a healthy, growing U.S. economy to help pay for it. The high price of replacing what was lost makes it more vital than ever that we continue to fight for the free-enterprise agenda — a policy mix that has a proven track record of boosting economic growth, creating new jobs, and enhancing prosperity. With rapid economic growth, a price as high as $200 billion is more affordable — it would be less than the difference between 3 percent and 4 percent growth of GDP over the next two years.

Given these commonsense points, it seems strange that the Congressional Research Service came out today to say that the tax break package, put together by the House and Senate Tax writers, will do little to help the neediest victims; rather, only the rich will reap the benefits.

This is not a time for class warfare.

Rich and poor alike have been devastated by Katrina. The only way prosperity will return to the Gulf Coast is if businesses are able to reopen, workers are rehired, and communities are rebuilt. Devastated business owners (those are the rich-guys) need more of their money back in order to jump-start production and revitalize industry. Everyone benefits from this; not just the rich.

We hope members of Congress, and the rest of the country, realize how important tax incentives and pro-growth policy is for the Gulf Coast, not to mention the nation as a whole.

Otherwise, Katrina may rear her ugly head again, but this time in the form of an economic downturn of even greater proportions.

Like any weathercast, one must take news about Social Security reform with a healthy dose of skepticism. Recent reports suggest silent agreement among many congressional republicans to table reform for the next congress, particularly in the wake of Hurricane Katrina.

From The Hill this morning:

 
Cold-war device used to cause Katrina?

Meteorologist Scott Stevens, a nine-year veteran of KPVI-TV in Pocatello, said he was struggling to forecast weather patterns starting in 1998 when he discovered the theory on the Internet. It's now detailed on Stevens' website, www.weatherwars.info, the Idaho Falls Post Register reported.

Stevens, who is among several people to offer alternative and generally discounted theories for the storm that flooded New Orleans, says a little-known oversight in physical laws makes it possible to create and control storms — especially if you're armed with the Cold War-era weapon said to have been made by the Russians in 1976. Stevens became convinced of the existence of the Russian device when he observed an unusual Montana cold front in 2004...

Scientists discount Stevens' claims as ludicrous and say they run contrary to the second law of thermodynamics, that energy can be neither created nor destroyed.

Read the rest of the story here

So...if the second law of thermodynamics is bunkum, perhaps we can weave some straw into gold and pay for the $200 billion in projected Hurricane Katrina relief (?)

Just to hedge our bets though, perhaps everyone should keep an eye out for extra pork in your area.

And make sure to check out Operation Offset, about which we blogged earlier today.