Hurricane Milton is set to make landfall on Wednesday between Cedar Key and Naples, Florida, threatening significant damage along the Gulf Coast. The region is still reeling from Hurricane Helene, which claimed at least 234 lives and caused over $30 billion in property damage, according to CoreLogic, a real estate information services provider. Despite expensive emergency aid programs, too many Americans remain in dire straits. Instead, policymakers would be wise to consult the teachings of Nobel laureate economist Milton Friedman: "you don't let prices rise, you destroy the system…which coordinates the activities of different people."
It's understandable to call for government assistance when faced with the havoc wreaked by natural disasters. But the government is just one kind of human institution—one that often lacks sufficient information to help people. To deliver disaster victims the goods and services they desperately need, it's better to rely on market mechanisms.
