ALLOCATING SCARCE RESOURCES AMONG COMPETING USES. The editors at the New York Times would prefer not to tell New Orleans: Drop dead.

Maybe America does not want to rebuild New Orleans. Maybe we have decided that the deficits are too large and the money too scarce, and that it is better just to look the other way until the city withers and disappears. If that is truly the case, then it is incumbent on President Bush and Congress to admit it, and organize a real plan to help the dislocated residents resettle into new homes. The communities that opened their hearts to the Katrina refugees need to know that their short-term act of charity has turned into a permanent commitment.

Their interpretation.

If the rest of the nation has decided it is too expensive to give the people of New Orleans a chance at renewal, we have to tell them so. We must tell them we spent our rainy-day fund on a costly stalemate in Iraq, that we gave it away in tax cuts for wealthy families and shareholders. We must tell them America is too broke and too weak to rebuild one of its great cities.

For another interpretation, read this.

Today, most central cities feature horrific educational deficiences, crumbling infrastructure, and stultifying regulations that drive commerce ever more into the suburban periphery. Yet most city leaders—not to mention productive citizens in the rest of the nation—avert their eyes from these problems until a trauma like Katrina forces the products of our urban maladministration into view. Rather than re-examine their bankrupt social and economic premises, urban elites prefer to channel money into sports stadia and convention centers, hip lofts and restaurants, hoping somehow this will suck talent and wealth into their cities. As if today’s urban underclass will just fade away, and leave the cool hipsters unbothered to enjoy their entertainment districts.

This collapse of responsibility and discipline goes against the entire grain of urban history. From republican Rome to the golden ages of Venice, Amsterdam, London, and New York, cities have flourished most when they have served as places of aspiration and upward mobility, of hard work and individual accountability. By becoming mass dispensers of welfare for the unskilled, playpens for the well-heeled and fashionable, easy marks for special interests, and bunglers at maintaining public safety and dispensing efficient services to residents and businesses, many cities have become useless to the middle class, and toxic for the disorganized poor. Today’s liberal urban leadership across America needs to see the New Orleans storm not as just a tragedy, but also as a dispeller of illusions, a revealer of awful truths, and a potential harbinger of things to come in their own backyards.

The common theme: corporate welfare, whether it be no-bid contracts in Iraq or entertainment-industry subsidies in the States? (At least nobody mentioned the streetcars?)