Katrina’s “Silver Lining”

Analysis:

This story frames the question of the local economic impact of Katrina in a rather distorted and incomplete manner, focusing on potential profits for local companies, while glossing over costs to the public. The reporter frames the story by talking to a local contractor who is anticipating increased business due to the hurricane, and an economics prefessor from Grand Vally State University. While the reporter does mention that some prices for goods will go up, he does not elaborate on this, nor do any of the people interviewed discuss this topic. The reporter does make one statement about higher costs, he asys “If the rebuilding continuew, experts say constructin materials and labor costs might go up”. Nowhere does he clarify who the “experts” he mentions are. It is also worth noting that the reporter frames increased labor costs and a negative thing. While increasing labor costs are a negative thing from the point of view of business, from the point of view of workers they mean higher wages. And yet in local reporting on economy, increasing wages are almost always reported as an increase in labor costs, e.i. an expense for business and therefore a negative economic factor.

Completely left out of this story is the issue of who will be paying the costs of any potential clean up in the wake of Hurricane Katrina. So while the story tells us that some local companies may get a few Hurricane related contracts, it does nothing to tell the viewer what the hurricaine will cost in terms of tax dollars spent or increased insurance rates. The reporter does mention that shipping will be disrupted by the hurricane but does not specify how this will affect consumers. Instead, a local economist is interviewed who states that “you think about the devastation, and it’s not good, but in some cases there is going to be a bit of a silver lining in it for some companies in the area.” This statement exemplifies the way that this story frames the issue of the local economic impact of Katrina, focusing on potential profits for some companies while brushing aside the issue of costs to the average taxpayer.

At the end of the report the newsreader states that “Now the governments already handed out a few controversial contracts to some politically well connected companies without looking for cheaper bids.” No other information about this point is given, not event the names of these “well connected companies.” Would it matter to viewers to know that these companies include Halliburton and Bechtel, companies that have already recieved millions of dollars in no bid government contracts in Iraq.

Story:

FOX 17 Newsreader – Well we’ve all felt the economic ripples from the hurricane, but economists say it will affect more that just gas prices. Material and labor costs are on the rise too. But as FOX 17’s Carl Apples shows us tonight, the rebuilding effort could eventually give the economy a boost.

Reporter – Seems like an impossible job but in some places the rebuilding has already started.

K&R Excavating rep – There’s just a mass of destruction that’s going to need to be reconstructed.

Reporter – Some businesses in West Michigan have their eye on it. Rob Devorst is with K&R Excavating. Several local construction & demolition companies like his are eager to play a roll in the clean up.

K&R Excavating rep – To see it there’s a need for us as a contractor so we could do some contract work so we’ve been kind of watching the news and the media to see what opportunities are available.

Reporter – It still may be months before any local companies get involved, if at all. Companies we talked to said it was still too early to start talking about a big economic impact of West Michigan. Steelcase for instance is concentrating on helping customers in affected areas, and their helping dealers get back on their feet. But experts say big contracts for national companies like Steelcase aren’t out of the question.

Dan Gledeman (economist) – They go to rebuild the businesses, these businesses are going to need products that our companies make, and so you know, you think about the devastation, and it’s not good, but in some cases there is going to be a bit of a silver lining in it for some companies in the area.

Reporter – that’s the good news but we all know what the hurricane’s done to gas prices. Also, if the rebuilding continues, experts say construction material and labor may go up. And shipping? Parts of the port of New Orleans will be up and running soon, but the damage will be felt all over.

Dan Gledeman – If affects us because we have imports of all sorts of things coming in through there, rubber comes in through there, cement comes in through there, coffee comes in through there.

Reporter – Devorst will take part if asked, but he says even if they aren’t paid to go to New Orleans, they may pitch in anyway.

K&R Excavating rep – We’re available, actually this is our downtime. We’ll be getting into that in November so if the opportunities are there we should be able to respond.

Reporter – from Kent County, Carl Apple, FOX 17 News and 10.

Newsreader – Now the governments already handed out a few controversial contracts to some politically well connected companies without looking for cheaper bids.