First Wealth Redistribution & Now Stupidity Reallocation?

First Wealth Redistribution & Now Stupidity Reallocation?

Ok, so Obama wants to redistribute wealth, agreed?  I don’t have to explain THAT statement, do I?

Now Sen. Chuck Schumer (D-NY) is on a campaign to reallocate the economic impact of stupid people onto the shoulders of private business and, presumably, their customers. [Note: what I say here is not meant to demean or diminish in any way the many REAL victims of Sandy.]  After the devastation of super storm Sandy in the New York City region, many schools on Long Island were closed for an extended period of time.  New York State schools are required to teach a minimum of 180 days.  School districts were closed one, two weeks, some longer.

Now the schools have to make up those lost days.  Thusly the mid-winter vacations in February are canceled.  Fine.  But wait!  Horror of horrors, some families had planned vacations for that time period.  Said vacations were paid for and were generally not refundable.  “Oh, the humanity!”

Enter the “intellectually challenged” masses who decided NOT to purchase airline/vacation cancellation insurance when they booked their vacations.  They saved a few bucks not buying insurance. They gambled and lost.

Not to worry, here comes their Superhero Sen. Chuck Schumer (D-NY) (a/k/a “The guy who never met a problem he couldn’t milk to get votes”).   Good ol’ Chuck said “Having to cancel a long planned vacation because of the storm is bad, but being forced to shell out hundreds or thousands in cancellation or change fees is worse,” said Schumer.  “Many businesses in the wake of Hurricane Sandy have stepped up to the plate and gone out of their way to help those affected, and I would urge the travel industry to do their part as well.” [Emphasis added]  Hey Chuck, it is true that MANY have gone out of their way to help actual Sandy victims; people died, folks have lost their homes, people are still without food, etc…

Chuck, here’s my question: “Why should the travel industry have to bear ANY financial burden because people were too stupid to buy cancellation insurance?”  Should insurance companies volunteer to “step up to the plate” and provide financial coverage to renters who lost everything to Sandy but did not buy renter’s insurance? Jiminy, if anyone answers “yes” to that last question, we are truly lost.

Economic “stupidity reallocation” is just as Anti-American as wealth redistribution. Period.  On the plus side, since all those parents likely put in for time off at work already, in anticipation of going on vacation, now they’ll be home to help their kids with their homework!  Maybe their stupidity will skip a generation?

Read the full press release here

Schumer Calls on Airlines and Cruise Lines to Consider a Special Refund or Credit Plan for Families and Teachers Affected by Superstorm Sandy Who Are Forced to Cancel Upcoming Midwinter Vacation Plans

3 thoughts on “First Wealth Redistribution & Now Stupidity Reallocation?

  1. You’ve written an article with no facts, done zero research, and provided no math. Kudos.

    As someone who actually flies let me help you out in what he’s asking for. Plane tickets triple or quadruple in cost when you get closer to the flight date. Same seat, same plane, just gouging. Since my presence costs thousands of dollars, my clients don’t mind paying. For someone who went to work all year to save up to buy 4 flights, not only is it instantly 600 dollars+ (most airlines are 150 dollars to change a flight whatsoever), your seat isn’t worth what it costs now on the open market, it’s worth a lot less, so you’re not charged the difference, you’re charged the current “new” ticket price. Some people, I’d say a lot of people with jobs and kids (especially ones who’s houses just got heavily damaged) don’t have 4 thousand dollars to whip out. And trip insurance wouldn’t cover these fare difference charges, just waive the 150/ticket fees. This isn’t asking the airlines to “bear financial burden”, it’s asking them not to gouge to their smaller customers.

    But please, hop a plane and come explain what you meant to my face I’m home in Dallas for a few weeks. I have enough miles on several airlines to get you here for free.

    • Well then kind sir, “Should insurance companies volunteer to “step up to the plate” and provide financial coverage to renters who lost everything to Sandy but did not buy renter’s insurance?” Hmmmm? (hey Thanx for showing me the Disqus works! Just installed it today!)

      • (Disqus doesn’t have a mobile web link in the email that I got btw, or I’d have gotten back sooner. Or I didn’t see it, had a few meetings and errands to do, had to get the dog from the Kennel).

        Ok so as conservatives would point out that Mandatory Health Insurance is different then Mandatory Car Insurance, flight insurance is different from going to Las Vegas and buying insurance when the dealer has an Ace showing at the blackjack table.

        Let me explain myself.

        Let’s look at say, Renters/Homeowners insurance on apartments in a building (looking at my stack of bills for inspiration). There’s 20 units per floor in my building and 11 floors, every unit is required to have 100 thousand dollars of insurance. So if the building is hit by a meteor, we get 22 million dollars for a new building and carpets and couches and TV’s. Now on the greater scope, every apartment building in the area has similar coverage, and the idea is that if we all pay in premiums per year the expected outlay in destroyed apartments per year divided across all the insureds, we as a group pay a third party to replace our property in the event of a calamity. This is more or less the model of what is meant by insurance.

        “Trip Insurance” is not a financial instrument to purchase an entire new trip in the event something goes wrong and causes the trip to be cancelled (and let’s live in the fantasy world where this is a real issue and parents aren’t just going to say screw it and pull their kids out of school for the week). The flight is a service purchased from the airline in the first place, it holds no monetary value, it cannot be traded or re-sold (interestingly different from a concert ticket that is in some ways similar to a bearer bond). This was different 20 or so years ago, you literally could re-sell your ticket or trade it back to the airline for cash. The airline has been paid for providing a service, yet unlike say, a lamp, cannot be returned to the store, or won’t be re-imbursed if you change your mind. Most “trip insurance” only leaves the money in the reservation and won’t refund your money anyway, and it certainly won’t cover the cost of hotel room, rental car, and other money potentially spent on the trip. And what it CERTAINLY won’t cover is the difference in fare of say, booking the trip for a month a month later much closer to the flight date for some other days off.

        So what apparently he’s asking for is the airline to provide the service they were paid for, without inflating their arbitrary ticket prices or applying the REDICULOUS 150 dollar rebooking fee, that could very easily be 4000 dollars on people who also might have just gotten hammered with some serious property damages, loss of business, or loss of work, since what they purchased isn’t subject to it’s fair resell value in a free market by the purchaser.

        The airlines have been paid for the service they are providing so they aren’t at a financial loss, and the “trip insurance” you are referring to is not group liability protection paid to a third party for mutual protection like you’re trying to correlate it to.

        So that all being said, to answer the other side of your direct question, we have federal emergency funds to help rebuild housing and other infrastructure damaged by unfortunate disasters, because there are some things the government handles that is above and beyond the scope of normal operations by insurance companies. I bet if you look into it, the insurance companies also will be receiving government assistance in paying out on so many claims being filed en masse due to a massive disaster.

        And let me add that [EDITED FOR LANGUAGE]for having a problem with someone asking the airlines to wave ruthless fees more targeted at making money off business people like me changing their minds then vacationing families, so hard working Americans don’t have to choose between a vacation they saved up for or their children’s education. There’s plenty of other shit that comes out of Chuck Schumer’s mouth you can disagree with and have a valid point.

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