Lest we get carried away by that Bush speech about reconstructing New Orleans, here’s an extract from Paul Krugman’s column.

It’s a given that the Bush administration, which tried to turn Iraq into a laboratory for conservative economic policies, will try the same thing on the Gulf Coast. The Heritage Foundation, which has surely been helping Karl Rove develop the administration’s recovery plan, has already published a manifesto on post-Katrina policy. It calls for waivers on environmental rules, the elimination of capital gains taxes and the private ownership of public school buildings in the disaster areas. And if any of the people killed by Katrina, most of them poor, had a net worth of more than $1.5 million, Heritage wants to exempt their heirs from the estate tax.

Still, even conservatives admit that deregulation, tax cuts and privatization won’t be enough. Recovery will require a lot of federal spending. And aside from the effect on the deficit – we’re about to see the spectacle of tax cuts in the face of both a war and a huge reconstruction effort – this raises another question: how can discretionary government spending take place on that scale without creating equally large-scale corruption?

Update: Dead Ringers on BBC Radio 4 tonight had a lovely spoof Bush speech. It began: “My fellow amphibians…”.