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itemscope="itemscope" itemtype="http://schema.org/Blog"><div class="row"><div class="col-lg-12 col-md-12"><div class="post-lead"><h1 class="entry-title single-post-title" itemprop="headline"> How to cope with scarcity in a time of disaster</h1><p class="postmeta"><span class="gabfire_meta gabfiremeta_bydate">By <span class="author vcard" itemscope="itemscope" itemtype="http://schema.org/Person" itemprop="author"><a href="http://troymedia.com/author/allanbonner/" rel="author" class="fn" itemprop="name">Allan Bonner</a></span> on <time class="published updated" itemprop="datePublished" datetime="July 25, 2017T8:06 pm">July 25, 2017</time></span><span class="gabfire_meta gabfiremeta_comment"><a href="http://troymedia.com/2017/07/25/how-to-cope-with-scarcity-in-a-time-of-disaster/#respond">No Comment</a></span></p><p class='subtitle'>If a disaster wipes out a lot of inventory, that scarce or non-existent inventory has a higher value with more dollars chasing fewer goods</p></div></div></div><section class="article-wrapper"><article itemscope itemtype="http://schema.org/NewsArticle" class="entry post-117659 post type-post status-publish format-standard has-post-thumbnail hentry category-municipal category-viewpoint tag-emergency-planning last_archivepost"><div class="entry-content" itemprop="text"> <script >window.___gcfg = 
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height:0px;margin-left:0px;margin-bottom:30px;' class='sfsi_plus_wicons shuffeldiv '><div class='sfsiplus_inerCnt'><a class=' sficn' data-effect='' target='_blank'  href='http://feeds.feedburner.com/troymedia/meXE' style='opacity:1' ><img alt='RSS' title='RSS' src='http://troymedia.com/wp-content/plugins/Ultimate-Premium-Plugin/images/icons_theme/default/default_rss.png' width='0' style='' class='sfcm sfsi_wicon' data-effect='' /></a><span class="bot_no sfsiSmBtn">236</span></div></div></div ></div></div><p class="p1"><span class="s1"><a href="http://admin.troymedia.com/base/wp-content/uploads/sites/6/2017/05/Allan-Bonner.gif" class="broken_link" rel="nofollow"><img class="alignleft size-full wp-image-3077" src="http://admin.troymedia.com/base/wp-content/uploads/sites/6/2017/05/Allan-Bonner.gif" alt="" width="150" height="230" /></a>Very few researchers document the positive effects of </span><span class="s1">disasters. But a few do note that a disaster also injects a lot of new </span><span class="s1">money into a region.</span></p><p class="p1"><span class="s1">It’s a tough way to get a little economic activity going but </span><span class="s1">the imperative is to repair.</span></p><p class="p1"><span class="s1">Per L. Bylund is one of the rare birds who explores this in his <a href="http://amzn.to/2uugh6O">book</a> The </span><span class="s1">Seen, the Unseen, and the Unrealized. The subtitle is How Regulations </span><span class="s1">Affect Our Everyday Lives. I think the book is about much more than </span><span class="s1">regulation, but subtitles are sometimes the product of the publisher, not </span><span class="s1">the author.</span></p><p class="p1"><span class="s1">The book is a readable account of the economic decisions entrepreneurs make </span><span class="s1">when deciding to go into a business, sell their product or consume a </span><span class="s1">product. We “produce in order to consume.” If I eat an apple, I’m </span><span class="s1">forgoing the eating of a pear and I forgo trading that apple for </span><span class="s1">something else. That&#8217;s opportunity cost.</span></p><p class="p1"><span class="s1">Bylund sustains this Dick and </span><span class="s1">Jane analogy for 173 pages without getting pedantic. He shows how nothing </span><span class="s1">is free. We see the apple, we don&#8217;t see the hypothetical pear, and we can&#8217;t </span><span class="s1">see what would have happened if we&#8217;d done something else all together – the </span><span class="s1">unrealized. </span></p><p class="p1"><span class="s1">This is his case against government subsidy, because the </span><span class="s1">government took the money out of the economic system to put it somewhere and </span><span class="s1">that creates a whole bunch of unintended consequences.</span></p><p class="p1"><span class="s1">But back to disasters, which are a dramatic case of scarcity, and supply and </span><span class="s1">demand theory. If your city is wiped out, you need food, clothing and </span><span class="s1">shelter far more than shopping for a winter vacation. The clothing is </span><span class="s1">anything you can get, rather than the latest Brooks Brothers jacket.</span></p><p class="p1"><span class="s1">A </span><span class="s1">disaster creates a “different consumption pattern.” A disaster is different </span><span class="s1">than “other radical change” because it may not be anticipated and it affects “</span><span class="s1">most or all goods across the board.” </span></p><p class="p1"><span class="s1">Who cares about opportunity cost, comparative shopping or anything else in a </span><span class="s1">disaster? You need what you need. Even if you have no </span><span class="s1">money, you obtain necessities with charity, volunteerism, debt or any way </span><span class="s1">you can.</span></p><p class="p1"><span class="s1">Bylund is right, as a professor of entrepreneurship and free enterprise </span><span class="s1">might be. Since he&#8217;s at Oklahoma State University, he must also have seen a few severe </span><span class="s1">weather events.</span></p><p class="p1"><span class="s1">But my interest is in prevention, not just analysis. I&#8217;d like to build on </span><span class="s1">the author&#8217;s sound analysis, to get to a solution.</span></p><p class="p1"><span class="s1">If a disaster wipes out a lot of inventory, that scarce or non-existent </span><span class="s1">inventory has a higher value with more dollars chasing fewer goods. If the </span><span class="s1">inventory is the necessities of life, the chase takes </span><span class="s1">on an urgency unparalleled</span><span class="s1"> in normal times.</span></p><p class="p1"><span class="s1">What shall be done? It seems axiomatic to me that we maintain inventory </span><span class="s1">levels, remove scarcity and slow down the chase.</span></p><p class="p1"><span class="s1">Walmart did this. Bylund </span><span class="s1">documents that it closed “two of its distribution centers and 126 of its </span><span class="s1">stores“ after Hurricane Katrina hit New Orleans in 2005. Half had no power, </span><span class="s1">some flooded and 89 had damage. Within 10 days, “121 of those stores were </span><span class="s1">open again“ after herculean work by the retail chain. I bet their prices </span><span class="s1">didn&#8217;t change much, if at all.</span></p><p class="p1"><span class="s1">Does Walmart have some secret way of reacting to a disaster? Can municipal </span><span class="s1">employees not learn this or ask?</span></p><p class="p1"><span class="s1">Cities can require businesses, buildings </span><span class="s1">and sports facilities to maintain inventories of food, medical supplies and </span><span class="s1">other necessities, including even cheap, disposable paper jump suits. There </span><span class="s1">can be cheap foam to sleep. There can be co-management agreements with other </span><span class="s1">cities to get supplies and responders on site quickly.</span></p><p class="p1"><span class="s1">This would reduce the scarcity, lower prices, decrease </span><span class="s1">the time getting back to normal. </span></p><p class="p1"><span class="s1">How about trying to get this going in your city?</span></p><p class="p1"><span class="s1"> <i>Troy Media columnist Dr. Allan Bonner has consulted on some of the major planning and public policy issues of our time on five continents over 25 years. He is the author of Safer Cities. </i></span></p><p><a href="http://troymediadigitalsolutions.com/" target="_blank" rel="noopener noreferrer"><img class="alignright" src="http://admin.troymedia.com/base/wp-content/uploads/2017/05/troylogocopyright.jpg" alt="" width="100" height="25" /></a></p><hr /><p class="p1"><span style="font-size: 10pt; font-family: arial, helvetica, sans-serif;"><strong>The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.</strong></span></p><p class="posttags"><i class="fa fa-tags"></i>&nbsp;&nbsp;<a href="http://troymedia.com/tag/emergency-planning/" rel="tag">Emergency planning</a></p><div class="single_postmeta"><p><img src="http://troymedia.com/wp-content/uploads/sites/6/2017/08/Bonner-Allan75-35x35.jpg" width="35" height="35" alt="Allan Bonner" class="avatar avatar-35 wp-user-avatar wp-user-avatar-35 alignnone photo" /></p><p><strong class="entry-title">How to cope with scarcity in a time of disaster</strong> added by <a href="http://troymedia.com/author/allanbonner/" rel="author" class="author vcard"><span class="fn">Allan Bonner</span></a> on <time class="published updated" itemprop="datePublished" datetime="2017-07-25T20:06">July 25, 2017</time><br /><a class="block" href="http://troymedia.com/author/allanbonner/">View all posts by Allan Bonner &rarr;</a></p></div><div class='yarpp-related'><h3>Editor's picks</h3><ol><li><a href="http://troymedia.com/2017/03/29/is-your-city-resilient-enough-to-handle-disaster-and-are-you/" rel="bookmark" title="Is your city resilient enough to handle disaster? 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