Compare and contrast the impact and policy responses of the floods and the latest Global Financial Crisis:
- How do governments fund the necessary spending?
- What does the funding mechanism say about the genesis of the crises as an actuary would view them?
Personally, I think whether funding comes from a one-off tax levy, or out of general coffers, the funding mechanism in response to significant crises should be the same, if both are as regular (or not) as each other.
Consider the following principle: one-off levies are appropriate for one-off events, while treatment from general revenue is appropriate for events that are considered likely to occur on a regular basis.
So, the policy response seems to indicate the government thinks that massive financial crises aren’t really that big a deal, or have a reasonably predictable frequency.