Home > Uncategorized > Romney Is Right About FEMA – Business Insider

Romney Is Right About FEMA – Business Insider

October 30, 2012 Leave a comment Go to comments

Let’s recall how one “profit-making” company did during Hurricane Katrina. From the study “Wal-Mart to the Rescue: Private Enterprise’s Response to Hurricane Katrina”:

Wal-Mart arrived in the New Orleans area long before FEMA and had the supplies that the community needed.

Phillip Capitano, mayor of the New Orleans suburb of Kenner, reported that, “the only lifeline in Kenner was the Wal-Mart stores.

In addition to what they sold as a result of quickly re-opening their stores, Wal-Mart also provided a large amount of free merchandise, including prescription drugs, to those in the worst-hit areas of the Gulf Coast.

And here is the author’s conclusion:

The tale of Hurricane Katrina as a massive failure of government at multiple levels is a widely accepted one, even among people normally not inclined to point the finger of blame at government.

When placed next to FEMA’s failures, the largely untold but very clear story of Wal-Mart’s success illustrates the advantages the private sector has in managing the logistical challenge of resource allocation during a natural disaster

A political economy perspective on Wal-Mart’s heroic performance strongly challenges the belief that with more will, resources, or expertise, government could ever respond effectively to a major disaster…

The New York Times — and the pundits trotting out this editorial to damage the Romney campaign — are doing just what the study warned against, ignoring the other half of the story.

They don’t even consider how markets or decentralization can improve performance. It is the same story with Medicare. They have a model — as old fashioned and obsolete as it is — and they’re sticking with it. Forward?

via Romney Is Right About FEMA – Business Insider.

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