Shameless Disaster Capitalism: How Companies Are Already Planning to Get Rich Off Superstorm Sandy
http://www.alternet.org/environment/shameless-disaster-capitalism-how-companies-are-already-planning-get-rich-superstorm
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 citys refusal to embrace Walmart will likely make the recovery much harder: Mom-and-pop stores simply cant do what big stores can in these circumstances, he wrote.
And the preemptive scapegoating didnt stop there. 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 shouldnt be public at all. Instead, cash-strapped governments should turn to public private partnerships, known as P3s. That means roads, bridges and tunnels being rebuilt by private companies, which, for instance, could install tolls and keep the profits.
Up until now, the only thing stopping them has been the lawspecifically the absence of laws in New York State and New Jersey that enable these sorts of deals. But Rapoport is convinced that the combination of broke governments and needy people will provide just the catalyst needed to break the deadlock. There were some bridges that were washed out in New Jersey that need structural replacement, and its 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 thats when you turn to a P3.