Should The New New Orleans Be Downsized?

"Some economists are starting to wonder if Mr. Hastert might have had a point about caution when it comes to rebuilding New Orleans, as poorly articulated as it might have been. It's not just the city's natural disadvantages (much of it is located below sea level) that worry economists. It's also its economic position -- rampant poverty and an exodus of people and businesses even before the hurricane touched down -- and the need to avoid creating incentives that could lead to development that is no less vulnerable."

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