An economic and ethical analysis of the Katrina disaster

Abstract

PurposeThe purpose of this paper is to apply economic and ethical analysis to natural disasters such as Hurricane Katrina to determine which approaches to disaster relief work best and which should be abandoned.Design/methodology/approachThis paper provides a combination of narrative with argument and analysis.FindingsGovernment involvement in disaster relief has proven to be economically inefficient and also rights‐violating. Private sector initiatives and economic and political freedom provide better solutions.Practical implicationsThe findings point to ways that can improve the economic efficiency of providing disaster relief while also safeguarding property and contract rights.Originality/valueThis paper combines economic and ethical analysis and includes discussions from the perspectives of both utilitarian ethics and rights‐based ethics, which is not usually done in the economics literature.