It was tough trying to decide which mischaracterization of Ron Paul's FEMA comments to discuss here. Ultimately though, the vote went to ABC News, simply because it is the largest of the major services to publicize the news.
The good news is that Ron Paul is now getting some press. The bad news is that is less than favorable.
Paul made some comments which, with minimal examination, might appear to be insensitive and suggest a libertarian approach to government is heartless. He cautioned that FEMA is inherently flawed in that it adds a level of bureaucracy to emergency response and encourages a moral hazard. This last notion is particulary abstract and not easily understood, particularly by folks who thinks government can just create money.
ABC News, along with several other mass media outlets, has done a superb job here presenting Paul's views in the worst possible light. What they fail to mention is that Paul is not opposed to helping people who suffer disasters, he is simply arguing that the USG does a pretty poor job of it. He would prefer the federal government take the money it is currently using to fund FEMA conferences and pensions and offices, and give it back to the states to use for emergency situations. Paul's other objection to FEMA bailing everyone out who gets slapped by nature is that it subsidies poor decision making. If everytime a town is flooded insurance costs go up only a fraction of what it costs insurance companies to pay claims, an insurance company is going to skip town. But because the USG, via FEMA, subsidizes disaster relief, people can continue to rebuild at a decreased cost. This sounds great if you live in a flood plain. But if you live in someplace else, you are- through redistribution of USG resources- footing the bill.
FEMA can only take money from one part of the country and send it to another. Ron Paul argues those decisions are better made at the personal and local level. Ron Paul is right: federal mandates are inefficient (not to mention inffective- "You're doing a heck of a job Brownie!").
Sensible libertarian views on nearly everything- except foreign affairs.