We use cookies to support features like login and allow trusted media partners to analyse aggregated site usage. Keep cookies enabled to enjoy the full site experience. By browsing our site with cookies enabled, you are agreeing to their use. Review our cookies information for more details.
We use cookies to support features like login and allow trusted media partners to analyse aggregated site usage. Keep cookies enabled to enjoy the full site experience. By browsing our site with cookies enabled, you are agreeing to their use. Review our cookies information for more details.
We use cookies to support features like login and allow trusted media partners to analyse aggregated site usage. Keep cookies enabled to enjoy the full site experience. By browsing our site with cookies enabled, you are agreeing to their use. Review our cookies information for more details.
This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Review our cookies information for more details
This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Review our cookies information for more details
This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Review our cookies information for more details
This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Review our cookies information for more details
This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Review our cookies information for more details
Schumpeter

Business and management

Sandy

Success and failure after the storm

Nov 2nd 2012, 18:19 by T.E. | NEW YORK

There have been five New York blackouts in my lifetime, which, if nothing else, suggests that it is hardly an aberrant event. The one in 1965 was a little spooky but exciting. In retrospect, it was a crack in the city that would widen into the anarchy of the blackout in 1977, with its rampant looting and arson. A disaster is good if, for nothing else, bringing into stark relief the vulnerabilities of a community.

The World Trade Center attack in 2001 stands on its own, but two years later was a better indication of how the city’s ability to cope had been transformed from the 1970s. There was palpable fear that the outage in 2003 was the result of another attack, but the two most important public officials that year, Michael Bloomberg, the mayor, and Ray Kelly, the police chief, were calm and credible and people calmly evacuated offices, often to walk many hours back home.

The aftermath of Sandy, notwithstanding horrendous devastation and many accidental deaths, has much in common with 2003, most notably a sense of orderliness that has come to be expected, and is likely deeply appreciated only by those who experienced prior panics. The same mayor and the same police chief were very much in charge this time as well, ticking off lengthy lists of steps, with dull and self-serving political statements only protruding when other politicians managed to grab time before news cameras. Perhaps most surprising has been the remarkable response by the city’s often reviled mass transit authority, which cobbled together numerous temporary methods, began an enormous clean-up, and, through the mayor, provided constant updates.

Businesses were not surprisingly crushed by the power outages, but in Manhattan there were also examples of joyful entrepreneurism in the areas that had been most affected by the loss of power. The Old Homestead, a famous steakhouse in Chelsea, set up charcoal barbecues outside its entrance. The smoke provided an advertisement a half-mile away, drawing crowds. Electricity was out but gas still flowed. At Ben’s Pizzeria on MacDougal Street, customers sat in the dark eating slices and, it seemed, the underlying paper plates as well. Just up the street, a restaurant named La Lanterna di Vittoria trucked in a generator, which made it (perhaps appropriately given its name) a light in a dark neighbourhood, and during the day a popular charging station for laptops and cell phones.

Numerous tiny markets and delicatessens cleared signs from their windows to capture a bit of light and did a brisk business selling out of anything useful on their shelves. Early on, it seemed that the lack of caffeine would transform one of the world’s most caffeinated populations into zombies, but coffee trucks have begun showing up, and some clever store owners have brought in vast urns. In the border area where power and phone connectivity begins to function, Starbucks’s wireless networks have become hugely popular. People congregate outside the stores. Mobile phone-chargers are doing a brisk trade (see picture, right).

The largest and most unintelligible failures have been with the public utilities. Four days on, there is still no detailed explanation of what went wrong at Con Ed, the local power utility, and its website has been devoid of key local information. Mobile-phone companies have been far worse, in as much as Con Ed is evidently hard at work doing repairs. Service by AT&T, America’s second-largest cell company, is pretty much non-existent in much, or all, of lower Manhattan yet there is not a single piece of useful information on its website about an emergency hotspot, or a timetable for repairs. Perhaps it felt that acknowledging its failures on a company internet site would undermine its ability to flog phones. 

Service by Verizon, the other major component of what is essentially an oligopoly, has been infinitely better—it works—but its response too has been less than reassuring in a crisis, providing little information about obvious problems. It delayed opening company stores in the immediate aftermath of the storm. The almost indistinguishable units run by franchisees were quicker off the mark, but that was a mixed blessing. A woman was stunned when she entered a branch on Seventh Avenue, near Times Square, to be told that plugging in her unit for a recharge would cost her $40. Anyone not paying was told to scram.

Why these companies should perform so much worse than the city or its entrepreneurs is an open question. They are an essential public service, using public airwaves that come with public responsibilities. Any impartial post-storm reckoning should reveal these companies as a weak link. A skeptic’s explanation would be that these companies collect monthly fees regardless of service, they do not face local voters, and the one entity that supervises their conduct, the Federal Communications Commission, is in Washington, insulated from the ravages, anger, and loss tied to the storm. If their failure did not produce widespread tragedy, it is because in a disaster the most important response is local, and this time around the locals did good.

Readers' comments

The Economist welcomes your views. Please stay on topic and be respectful of other readers. Review our comments policy.

flymulla

11/9/12I am sure Obama did not expect this just when he gets the seat New York City Mayor Michael Bloomberg has ordered fuel rationing based on vehicle registration plates after the city was hit by its second severe storm in just over a week. Drivers will be allowed to buy petrol on alternating days based on whether their licence plate ends in odd or even numbers, Mr Bloomberg announced at a news conference. Licence plates ending in a letter are eligible to buy fuel on odd-numbered days, he said. The markets took heavy losses for a second day in a row Thursday in a broad-based retreat late in the session. Every major sector closed to the downside. Wall Street will remain closed for a second consecutive day Tuesday after super storm Sandy left lower Manhattan flooded and largely without power. Wall Street hasn't shut down over inclement weather since the 1800s. The New York Stock Exchange announced it's testing contingency plans but denied reports of irreparable damage to its trading floor. Global markets appeared unfazed, with Europe gains Tuesday erasing the previous day's losses. "Markets have put in a robust performance, with equity prices appearing to have held up despite the damage that has been inflicted on the Northeast coast by Hurricane Sandy," Fawad Razaqzada, market strategist at GFT Markets, said. I thank you Firozali A.Mulla DBA

Ken Krasney

The winds weren't a factor in the damage here in manhattan. It was all about the storm surge. Flooding aside, the damage here was minor. The closing of tunnels and bridges (we are on an island after all) made getting around a nightmare, since motorists and MTA riders were all affected. The situation improved rather quickly, particularly as our highway and rail infrastructure is antiquated and a source of plunder for venal politicians. There may be a redundancy there.

In my neighborhood the biggest challenge was not finding a baguette for several days. The second biggest was boredom. As the news filtered in from Queens and the Jersey shore, we were as shocked as anyone else in America.

One factor that is helping exacerbate the effects of these storm surges: the sinking of the land in the middle Atlantic coast; look at the map of Chesapeake bay or the New York-New Jersey area, you see classic examples of drowned coast. No amount of burying wires is going to overcome that. Credible solutions have been proposed but not one politician in America has the guts to take the initiative to deal with this or any other difficult reality.

murozel

So it's good news that people in NYC acted like a close-knit community and worked to mitigate the sufferings from this disaster as a whole. Instead of seeing this as an opportunity for some looting and other safety&security violations, this human behavour is good news, indeed.
Regards,

ewakorn

Sandy was only a Category One storm -- but NYC could barely handle it.

Hong Kong was struck by a Category Four storm (Typhoon signal No. 10) in last July -- however, not even one single person died in the storm.

Some common sense measures could be easily taken to prevent the catastrophe:

(1) All utility cables should be buried underground. In Asian cities like Singapore and Hong Kong, all utility cables are buried underground.

(2) Trees should be restricted and constantly trimmed to certain height in residential zones.

(3) Important buildings, i.e. hospitals, should not be built in
flood zones.

(4) Subway entrances and ventilation should not be built at level with the street.

(5) As a financial center, NYSE should not be closed for two consecutive trading days because of the weather. No other financial centers would close their markets for two days due to the weather.

guest-inloaei in reply to ewakorn

Although I agree that simple steps can be taken to mitigate the effect of such storms in the future, I take issue with some of your other points.

Is the strength of the storm the most important factor in evaluating the effect on a city? The size and proximity to the worst of the winds and tidal surges, as well as the geographic layout of the city and its elevation seems to factor heavily into how devastating a storm will be.

And is it really a fair comparison to contrast the storm-readiness of HK, which is located in a typhoon-prone zone to NYC which has seen only about a dozen significant hurricanes in the past 200 years?

As other comments have pointed out, the picture from the article is from the NJ coast, not in NY. In Manhattan, most of the utility cables are underground. Trees are regularly trimmed and monitored by the city.

Anjin-San in reply to ewakorn

(5) As a financial center, NYSE should not be closed for two consecutive trading days because of the weather. No other financial centers would close their markets for two days due to the weather.

There are only two historically comparable events in the whole World: London after October 1987 storm, and Tokyo after March 2011 Earthquake. LSE did not close for two consecutive business days only because the Storm happened on Thursday night, and the following Monday was 'The Black Monday'. TSE did not close at all because the Earthquake happened just 16 minutes before the close of market, and the fist Tsunami didn't hit the shores until AFTER the market closed.
In short, both LSE and TSE have been lucky, and NYSE a lot less so.

Eng2

Your picture says it all - overhead cables. Put the lines underground and 90% of the problems will disappear.

mcucc

The main image on this article is of Ortley Beach, NJ. This is about two hours drive south of New York City. While I know New York has been hard hit(I live in Hoboken and work in the Financial District), this completly misrepresents the amount of damage to the city. Moreover, given that you do not mention one of the hardest hit areas, the coast of Central/South New Jersey, you are using its very real destruction for attention.

FlownOver

The FCC is the poster boy for captured agencies. Utterly obedient to the businesses it is charged with overseeing.

And they are entities that are beyond NY-NJ. A NY-NJ customer is no different with one anywhere else. They have no need to answer to just-another-customer, they have no political nor social responsibility to Bloomerberg, Christie et al.
I bet if Bloomberg and Christie say something, Thise bastards just pump more money to K Street and Capital Hill to scream Big Government!

About Schumpeter

In this blog, our Schumpeter columnist and his colleagues provide commentary and analysis on the topics of business, finance and management. The blog takes its name from Joseph Schumpeter, an Austrian-American economist who likened capitalism to a "perennial gale of creative destruction"

Advertisement

Economist video

Explore trending topics

Comments and tweets on popular topics

Advertisement

Products & events

Advertisement