Marshall‑Scale Aid, Minimal Recovery

Updated: 2025.08.29 1M ago 2 sources
The U.S. spent about $140 billion on Katrina recovery—more than the Marshall Plan—yet New Orleans remains smaller, poorer, and more unequal. The money was dispersed through a maze of agencies and contractors with weak accountability, leaving core services like housing, schools, transit, and health care underdelivered. Big checks without coherent authority and metrics don’t rebuild civic capacity. — It reframes disaster policy around state capacity and governance design, not just funding levels, with implications for future climate‑driven recoveries.

Sources

Katrina’s Forebodings
Nicole Gelinas 2025.08.29 83% relevant
It argues tens of billions in rebuilding aid temporarily juiced construction/services but New Orleans then reverted to pre‑storm decline—now smaller, still high‑crime, with ~7% fewer private jobs than 2004 and deeper tourism dependence—echoing the claim that big checks without coherent authority don’t rebuild capacity.
How well did Katrina reconstruction go?
Tyler Cowen 2025.08.28 100% relevant
NYT authors (via Cowen) note $140B committed and cite ICF International receiving nearly $1B for the Road Home housing program amid 'near‑zero accountability.'
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