2. Explain why federal disaster relief, which quickly disburses funds to victims of natural disasters such as hurricanes, floods, and large-scale crop failures, will stabilize the economy more effectively after a disaster than relief that must be legislated.
Federal disaster relief that is quickly disbursed is more effective than legislated aid because there is very little time lag between the time of the disaster and the time it is received by victims. So it will stabilize the economy after a disaster. In contrast, legislated aid is likely to entail a time lag in its disbursement, potentially destabilizing the economy.