On September 26, the Bozeman City Commission gave us a powerful civics lesson, providing an excellent case study of how the political world works. They showed how difficult it is to convert good intentions into concrete expression when operating in the political arena. By voting to keep the $4 million granted for the parking garage by the $286 billion federal highway bill, the Commission frustrated organized efforts to redirect that sum to Katrina’s victims.

Disasters such as hurricanes demonstrate much more than nature’s power and human vulnerabilities. They expose political pathologies, exploitation, and the advantages accompanying wealth and class. They show that technology does not solve all problems and that overpopulation afflicts the poor most severely. They may even illustrate how climate change disproportionately harms those with few social and economic resources.

Sensitive, humane, caring folks responded to Katrina’s aftermath. Some civic leaders in Bozeman, led by Tracy Velázquez and Jane Shaw, made a serious attempt by suggesting Bozeman return a portion of the transportation pork barrel directed to us. While the federal government surely isn’t the best responder, I applaud this noble gesture. Further, I relish the civics lesson it offers. Never have I seen a better example of the sorry consequences of political allocation of resources.

Let us consider a few basic principles of political economy so well understood by our country’s founders. They knew that the primary task of government, in Mancur Olson’s terms, is to protect citizens from both mobile and stationary bandits. Protection from the mobile is obvious, for violent chaos is the last choice of sane individuals. It’s appropriate to employ government agencies to constrain or kill pirates, burglars, and muggers. When this isn’t effective, people who can afford it hire private security. This is an important, well-advertised feature of gated communities.

It is far more difficult to control the stationary bandits; they have been elected to public office. Their tactics are strategic and legal. Once ensconced, they have strong incentives to direct government appropriations toward their constituencies. The infamous $454 million “bridges to nowhere” put into the transportation bill by Republican representative Don Young of Alaska are compelling examples of this stationary plundering.

Decisions made in the political arena are, of course, politically calculated. How could it be otherwise? And how could the Bozeman City Commission vote to reject the money? After all, they worked with Montana’s delegation to obtain it and were pleased with the result. Indeed, they’d prefer more. This is the essence of public choice economics.

Katrina did not surprise hurricane experts. Its results were widely predicted by multiple government agencies and university researchers. Regardless, Katrina’s consequences are wrenching to Americans of good will, motivating Bozeman’s charitable efforts to redirect funds to where they are sorely needed. But even had Velázquez and Shaw been successful and the funds rejected or returned, they would unlikely go to Katrina victims. Given our institutional arrangements, existing laws and rules, they would be used more likely to gold-plate Don Young’s bridges, ideally with local content provisions requiring Alaskan gold.

City Commissioner Jeff Krauss illustrated these constraints when he said, “This isn’t about helping Katrina victims, they will be helped whether or not Bozeman has a parking garage.” While there is near universal agreement that the highway bill signed by President Bush has thousands of outrageous earmarks, Bozeman is ensnared in a trap. If we don’t get our “fair share,” others will take it. It would require a courageous political entrepreneur to spring us, someone who is visible and politically bulletproof.

No sensitive, civic-minded American would argue that our desire for a parking garage trumps the genuine needs of hurricane victims, most of whom are poor and disadvantaged on multiple dimensions.

A moral correction would require a major reallocation of funds, perhaps from the highway bill. I hope it happens -- but my hopes and expectations are in separate baskets. Regardless of outcome, let’s celebrate the innovative efforts of these local leaders, and be alert to the emergence of a national-scale political entrepreneur to redress this scandal of misdirected resources.