Business Services Industry
St. Lawrence Prof: Turn To Big-Box Stores, Not Government, When Disaster Strikes.
AScribe Business & Economics News Service, March, 2008
Byline: St. Lawrence University
CANTON, N.Y., March 28 (AScribe Newswire) -- When a major disaster strikes, many rely upon the government for assistance. A new study by St. Lawrence University Dana Professor of Economics Steven Horwitz suggests that real relief is likely to come from the local big-box chains.
The study, from the Mercatus Center at George Mason University, stresses that successful disaster relief depends upon responders having detailed knowledge of a local area and the right incentives to act on that knowledge. Examining federal and private responses to Hurricane Katrina, the study by Horwitz shows why the Federal Emergency Management Agency (FEMA) was destined to fail, and why for-profit firms succeeded at disaster recovery. It also...
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