Businesses Profit Off of Hurricane Gustav

Nearly 2 million people evacuated Louisiana while hurricane Gustav churned through the Gulf picking up speed. They left in fear that the outcome of this hurricane would mimic the aftermath of hurricane Katrina in 2005. Hurricanes are tragic forces of nature that are almost certain to happen, but can never fully be prepared for. While those in the line of Gustav are fearful, some business owners sit back and wait for the profit.

Surrounding cities and states already start to see the profit gain before the storm hits. These evacuees are spending money on air fare, hotels, food, necessity items, and even entertainment in the places they flee to. Those who decided to hunker down have spent money on generators, fuel, extra food, water, first aid kits, batteries, and other essential survival items. All of this extra spending is going to the hotel industries, hardware stores, oil companies, airlines, restaurants, super markets, and drug stores.

After the damage is done those businesses who are involved in building and restoration swoop in and quickly begin to make money. They often raise their prices when a disaster is predicted and leave those in need of their services no other choice but to pay that raised price. Contractors can expect to rake in millions if not billions after Gustav clears the coast. Victims often pay these contractors upfront and never receive the service requested in full or the way it was intended. In 2005, after hurricane Katrina, Dynasty scammed hundreds of people by getting upfront payments and never finishing their jobs as a contracting company or even starting them. As damage increases there may be similar events unfolding along the Gulf coast in the future. The media also racks in on the event as well. News channels have constant live coverage of the storm while millions of people sit and watch in terror.

Not all profits made are unethical. Most companies that will gain from hurricane Gustav are located in the affected areas. Hardware stores, building companies, furniture stores, and restoration businesses will make a profit from being paid by the victim's insurance companies. Their services are required after this event, and most would consider being completely ethical.

We can only hope that the media is making such uproar over hurricane Gustav because of the lack of coverage and planning during hurricane Katrina. However significant the damage from this storm, we can expect that some business owners are waiting for the storm to clear to begin making profits.