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OpEdNews Op Eds    H1'ed 11/7/12

Hurricane Sandy: beware of America's disaster capitalists

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Cross-posted from The Guardian

The aftermath of the storm offers a chance to rebuild a fairer society. How can we seize it?


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Destruction caused by Hurricane Sandy in Breezy Point, New York. Photograph: Julie Hau/Demotix/Corbis

Less than three days after Sandy made landfall on the east coast of the United States, Iain Murray of the Competitive Enterprise Institute blamed New Yorkers' resistance to Big Box stores for the misery they were about to endure. Writing on Forbes.com, he explained that the city's refusal to embrace Walmart will likely make the recovery much harder: "Mom-and-pop stores simply can't do what big stores can in these circumstances," he wrote. He also warned that if the pace of reconstruction turned out to be sluggish (as it so often is) then "pro-union rules such as the Davis-Bacon Act" would be to blame, a reference to the statute that requires workers on public works projects to be paid not the minimum wage, but the prevailing wage in the region.

The same day, Frank Rapoport, a lawyer representing several billion-dollar construction and real estate contractors, jumped in to suggest that many of those public works projects shouldn't be public at all. Instead, cash-strapped governments should turn to public private partnerships, known as "P3s" in the US. That means roads, bridges and tunnels being rebuilt by private companies, which, for instance, could install tolls and keep the profits. These deals aren't legal in New York or New Jersey, but Rapoport believes that can change. "There were some bridges that were washed out in New Jersey that need structural replacement, and it's going to be very expensive," he told the Nation. "And so the government may well not have the money to build it the right way. And that's when you turn to a P3."

The prize for shameless disaster capitalism, however, surely goes to rightwing economist Russell S. Sobel, writing in a New York Times online forum. Sobel suggested that, in hard-hit areas, Federal Emergency Management Agency (Fema) should create "free-trade zones -- in which all normal regulations, licensing and taxes [are] suspended." This corporate free-for-all would, apparently, "better provide the goods and services victims need."

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