Moral hazard

TPM Muckraker has a great find. After a Blackwater security guard killed an Iraqi bodyguard for the Iraqi Vice President,

... embassy officials proposed the price for the guard's life be pegged at either $100,000 or $250,000, a State diplomatic-security official countered with $15,000. The figure needed to be lower, the diplomatic-security official contended, so Iraqis wouldn't "try to get killed to set up their family financially." Two days after the shooting, Blackwater and State agreed that the guard's family should receive $15,000. Ultimately, Blackwater got the shooter out of Iraq and back to the U.S., with the assistance of State's diplomatic security service.

I suppose the same logic works for the Katrina victims too. We shouldn't give them very much compensation or they'll bring another hurricane upon themselves just so they can get rich. It's good to see that the Republicans fully understand the concept of moral hazard.