EconoLOL has never been a fan of the Hamptons, not so much due to the stuffiness and general pretentiousness that the region breeds, but mostly because of the pilgrimage like journey it requires to travel there. Had we known that our taxpayer money was going to subsidize the lavish vacation homes lining the coast, however, we’d have spent more time there, if only to point this out to the residents.
How it works:
Something called the “Federal Flood Program” subsidizes insurance policies for coastal homeowners (Hamptons, Malibu, Hyannisport, and other such poverty stricken areas). Due to the great risk of building on coastlines prone to flood damage, the insurance premiums justifiably would be a costly expenditure, but thanks to this program, a few hundred dollars will do…the rest we collectively pay for.
With this incentive to build where there otherwise would be great risk associated, $645 billion in property is now guaranteed by the government.