Stossel: Government has no 'obligation' to help disaster-torn cities like New Orleans

Stossel: Government has no 'obligation' to help disaster-torn cities like New Orleans

On The O'Reilly Factor on Nov. 1, John Stossel, former correspondent for ABC's 20/20 and current host of the Fox Business Network show Stossel, said that "the government should stop insuring areas" prone to disaster.

"What if nobody wants to insure you?" O'Reilly asked.

"Then you take your own risk. Then the private insurance market is saying, you live in a risky place, don't build there."

Stossel himself once received $250,000 in FEMA money, but said during the program he would not do so again.

He further explained, "If you're in any kind of zone that may be risky, the government should say, hey, you're on your own. If you can find an insurer who's going to do it for an exorbitant price go do it, that's all right, but if you can't, hey, tough."

O'Reilly continued to argue with Stossel, at one point saying, "The government has an obligation I think to rebuild New Orleans after Katrina, and to rebuild New Jersey, do they not?"

"They do not," Stossel said. "They have an obligation to get out of the way so you can rebuild if you want and provide roads and infrastructure."

"So a storm or an earthquake or a tornado rips apart a town, and you say the government shouldn't help out at all?"

Stossel would only go as far to say that "The government should keep the peace, make sure there's no looting," but that "Free, private individuals who have the money, who bought private insurance, who want to take the risk" could rebuild on their own.

When O'Reilly argued New Orleans might not exist in such a scenario, Stossel said, "So be it."

Watch the video below, published on YouTube by Media Matters for America on Nov. 2, below.