Motivated By Profit? Koch-Backed CATO Institute Calls For FEMA Privatization

August 28, 2015

As we mark the 10th anniversary of Hurricane Katrina, the most expensive natural disaster in U.S. history, the Koch-founded CATO Institute injected themselves into the debate over disaster response and preparedness. In a blog post criticizing the Federal Emergency Management Agency (FEMA) on the 10th anniversary of Hurricane Katrina, CATO Institute Director Chris Edwards calls for the complete privatization of disaster response and preparation organizations including FEMA. While Edwards is correct that George W. Bush’s FEMA made many egregious mistakes in its response to Hurricane Katrina, the total privatization of disaster relief would have, frankly, disastrous results.

Edwards writes that “the private sector also played a large and effective role during Katrina,” but he fails to relay the many companies, including several Koch subsidiaries, that took advantage of the situation.

Bridge Project’s new report, “Ten Years Later: A Look Back On The Koch Brothers & Hurricane Katrina,” looks at Koch Industries’ role in Katrina. The Kochs’ history makes it clear: If FEMA were privatized, corporations such as Koch Industries would put their own profits ahead of the interests of the communities facing disaster preparation, response, and recovery.

Edwards’ argument is a perfect example of the Kochs’ extremism, but there’s another issue. In the second paragraph, Edwards writes, “Weather forecasters warned government officials about Katrina’s approach, so they should have been ready for it. But they were not, and Katrina exposed major failures in America’s disaster preparedness and response systems.” 

This brings to mind the many warnings the government and corporations have received about extreme weather and increased disasters due to climate change. However, the CATO Institute and the Kochs’ many other issue groups are fighting tooth and nail against any climate-based pollution restrictions. Furthermore, they are a leader in climate denial.

As revealed in the new Bridge Project report, Koch Industries was accused of compounding the effect of Hurricane Katrina by destroying wetlands to build oil pipelines. Ten years later, they are still destroying the environment and contributing to climate change. Both times, they’ve been motivated by profit. What reason is there to think their push to privatize FEMA isn’t motivated by profit as well?

Paid for by American Bridge 21st Century Foundation