Property grabs and the Gulf

As Hurricane Katrina-ravaged cities begin the laborious process of rebuilding, there is increasing speculation that government officials may turn to the controversial – and often disparaged – use of eminent domain to revitalize the destroyed region.

It's a prospect that's raising eyebrows among critics who fear that land developers will take advantage of the desperation in the region and push devastated homeowners out of their homes in the name of redevelopment.

"We're not talking about using it to build new roads or dams or power lines," said Adrian Moore, vice president of research at Reason Public Policy Institute. "We're talking about giving it to businessmen who promise to build something that they'll profit from and leaders that are so desperate to rebuild that they are willing to do it."

The concern is that developers will seize property and put up housing developments that may not be affordable to the disadvantaged public or build large department stores, such as a Wal-Mart or Target on land that was taken.

An interesting twist indeed. As we already know these days private property can be confiscated to the benefit of private businesses.

In many ways this resembles the socialist system particularly the Soviet one where the lines between private and state property were often blurred. And this practice most certainly undermines the ideas of free enterprise and free market.

tags: katrina  law