Post-Sandy Stimulus? Not Likely: Erwann Michel-Kerjan In Fortune
The losses from superstorm Sandy are estimated to be between $10-20 billion dollars, with Michel-Kerjan speculating that approximately 60 per cent of those losses will come from lost business. Most of that lost business, however, cannot be recovered. People aren't going to buy twice as many cups of Starbucks coffee because the store was closed during the storm and they couldn't get any, the article explains. Some stores, like Wal-Mart or home improvement stores, may see a bump in business as customers head through their doors to purchase materials to repair their damaged homes and yards. However, if there is a profit to be made it may have already come in the form of consumers disaster-proofing their homes. "Spending before the disaster is really where you have the best return on investment," says Michel-Kerjan. However, he also argues that attempting to get people to spend that type of money in the absence of a disaster is challenging, at best.
Along with teaching at Wharton, he also serves as the Chairman of the OECD Secretary-General Advisory Board on Financial Management of Catastrophes and gives keynote speeches on being prepared in a chaotic world. Not only does he explain how to be ready for anything, but he also provides practical advice on how to benefit from staying ahead of the pack.