14 January 2006
New Orleans Revival
I agree with James K. Glassman, in his 12 January 2006 Wall Street Journal opinion piece, that central planning will not be the key to New Orleans’ revival. However, if free market solutions are to be found, they must recognize that no great city runs without a government and civil services. Moreover, they have to take into account that the economic driver of the city – in New Orleans’ case tourism – depends not only on hotel, restaurant, convention, and entertainment entrepreneurs; it also depends on the service workers and creative artists that their industries offer visitors.
Unfortunately, it was precisely the residences of those workers and artists that suffered the brunt of Hurricane Katrina’s destruction. New Orleans may be able to downsize and eliminate the most vulnerable of its residential quarters. However, if the tourist industry in that city wants to recover its former vitality, it will not easily dispense with the support of its previous population.
A leader to reincarnate the city must inspire its entrepreneurs to realize that they will have to invest in providing secure housing and community services for the employees on whom their revived business will depend. They will have to raise the capital necessary for reconstruction, on free markets. They will have to convince those markets that New Orleans’ economy will generate revenue sufficient to make their investments secure and rewarding; and that the tourist industry and cultural icon that is New Orleans has the administrative capacity to manage its recovery. That’s a big ticket for anyone. I hope that Mr. Glassman has a good candidate.
I agree with James K. Glassman, in his 12 January 2006 Wall Street Journal opinion piece, that central planning will not be the key to New Orleans’ revival. However, if free market solutions are to be found, they must recognize that no great city runs without a government and civil services. Moreover, they have to take into account that the economic driver of the city – in New Orleans’ case tourism – depends not only on hotel, restaurant, convention, and entertainment entrepreneurs; it also depends on the service workers and creative artists that their industries offer visitors.
Unfortunately, it was precisely the residences of those workers and artists that suffered the brunt of Hurricane Katrina’s destruction. New Orleans may be able to downsize and eliminate the most vulnerable of its residential quarters. However, if the tourist industry in that city wants to recover its former vitality, it will not easily dispense with the support of its previous population.
A leader to reincarnate the city must inspire its entrepreneurs to realize that they will have to invest in providing secure housing and community services for the employees on whom their revived business will depend. They will have to raise the capital necessary for reconstruction, on free markets. They will have to convince those markets that New Orleans’ economy will generate revenue sufficient to make their investments secure and rewarding; and that the tourist industry and cultural icon that is New Orleans has the administrative capacity to manage its recovery. That’s a big ticket for anyone. I hope that Mr. Glassman has a good candidate.
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