Antiterrorism Allocations--Becker

Posner discusses many of the thorny issues involved in the allocation of funds by The Department of Homeland Security to American cities to combat terrorism. I will concentrate my comment on how to align the incentives of cities to those of the country as a whole. Posner points out that there is a conflict between the incentives of cities and those of the federal government. When cities do more to prevent terrorism against their residents and buildings, they also help the country fight terrorism against other cities and towns without getting compensated for that help. He also indicates that if the federal government simply gives money to cities, the cities may reduce the amounts they would otherwise spend fighting terrorism. Both problems arise in many infrastructure and entitlement programs, such as road-building, Medicare for the poor, and the fight against contagious diseases. These sources of the tendency for cities to underspend on anti-terrorist activities can be at least partially overcome if Homeland Security did not outright give various amounts to different cities, but instead relied on the method used to combat similar issues that arise with other grant programs. The Department of Homeland Security should offer to give cities a certain number of dollars for each dollar they spend on antiterrorist activities. For example, if a city spent $30 million, they might get an additional $60 million from the federal government. In this example, a city would get to spend $3 dollars for each dollar they used from their own funds to fight terrorism. Federal matching of this type discourages cities from cutting back on their spending to fight terrorism since they lose say $3 dollars for each dollar they cut back. Matching grants also induce cities to give de facto recognition to the fact that each dollar they spend helps residents of other cities as well by improving the overall American fight against terrorism. The ratio of federal spending to city spending should be a measure of the ratio of the benefits to other cities compared to the benefits to the city spending their own money to fight terrorism. The matching need not be independent of how cities spent their own monies. Cities are more likely on their own to spend on salaries than on capital goods that are produced elsewhere since spending on employees gives jobs to local residents. The matching grants should then be oriented toward capital spending rather than labor spending. In fact, the Homeland Security program is so oriented, and that seems to me to make some sense. However, matching grants, particularly if the ratio of federal to local contributions is large, can create the opposite problem from that created by outright grants; namely, cities may spend too much since their spending is multiplied through the amounts available in matching funds. This is usually controlled by placing upper limits on the amounts that could be received in matching funds. Cities that are especially attractive to terrorist attacks--such as New York and Washington--would spend more fighting terrorism even without federal grants. Still, on their own they may not spend enough, so the upper limits they could receive in matching grants should exceed that available to say Kansas City. One problem is that as coastal cities like Los Angeles, San Francisco, Boston, New York, and Washington became better prepared to fight terrorism, terrorists might shift inland, to places like Detroit, Chicago, Cleveland, Omaha, Topeka, and elsewhere. As the bombing in Oklahoma City showed, even attacks in smaller cities cause considerable fear and consternation. That is why a federal program has to be national, and target smaller places as well as larger ones. Matching grants encourage smaller cities also to contribute to the fight against terrorism, and they will spend more when they become more vulnerable after the more attractive terrorist targets became better prepared. So the system is partly self-correcting through the incentives that cities have to protect their own citizens. But matching grants do not solve all the problems of how to best allocate limited federal funds. So the federal government will still need some guidelines that determine which cities should be given more Homeland money, although in a matched way.

Comments

[Anonymous]

بنت 18
شات بنت 18

[Anonymous]

Great article, I had a good laugh!links of london
tiffany jewelry

[Anonymous]

Provides the best tiffany jewellery, including Necklaces, Pendants, Bracelets, Earrings, Ringsat the lowest prices.Tiffany jewellery is the best online United Kingdom jewelry stores where you can buy the cheapest Tiffany & Co silver Our huge selection of
tiffany jewelry

[Anonymous]

good post,I think so!Abercrombie & Fitch on Sale, Hoodies, Jeans, T-Shirts, Pants, Polos

abercrombie and fitch abercrombie and

fitchcheap abercrombie fitch Abercrombie Men Tee abercrombie womens polos Abercrombie

& Fitch Men, women, and children's clothing and accessories edhardylife a famous ed hardy

store which sell directly ed hardy clothing, shoes, boots, swim suit and other cheap ed

hardy ed hardy cheap Ed Hardy ed hardy

clothing,Providing authentic Ed Hardy Clothing with competitive price and fast,secure

delivery.The famous brand by Don Ed Hardy 's Vintage Ed Hardy

[Anonymous]

Thanks very much for the compilation!links london
tiffany jewellery

[Anonymous]

Pervert! Let's get out of here. There are so many perverts here.So what? You are such a bad person Who's gonna like you? Tiffany Jewelry Don't mind him. Don't mind him. He's just playing. Forget him. He saw me steal the diamond. Tiffany Jewelry You're dreaming! In your dreams. Wake up and smell the coffee.Where'd you get it!Good idea.Think it over.You can never tell about this sort of thing.Take a closer l Wake up and smell the coffee.Where'd you get it!Good idea.Think it over.You can never tell about this sort of thing.Take a closer look.When did I say that!You have to be on time. Don't be late. ook.When did I say that!You have to be on time. Don't be late.

[Anonymous]

Just love tiffany and ugg boots,thanks!!

[counseling psychology undergraduate diploma]

Amazing one, i appreciate this work....

[crystal box]

I was so fortunate to encounter the ll,thank you very much .

[mbt online]

That was my thought,too.

[air jordans nike]

HHH Yes, the design of national policy is important, how our economic development plans for the next five years, how the implementation, how to make our economy even faster. Are designed to advance our focus to invest money in what ways it should be carefully arranged.

[red bottoms]

If you wish to be the best man, you must suffer the bitterest of the bitter.

[supra footwear]

HHH Yes, the design of national policy is important, how our economic development plans for the next five years, how the implementation, how to make our economy even faster. Are designed to advance our focus to invest money in what ways it should be carefully arranged.

[Justin Bieber Shoes]

I like you on facebook and follow through google reader!

[supra for kids]

Now we have a great walkway that goes to the beach and to the canals that came from the partnership of community with government

[Moncler Jakke]

That was my thought,too.