The Business of Rebuilding
While Americans are reaching out, the media are pointing fingers. The media always seem to point first at the federal governments response in times of national tragedy demanding that federal agencies do more, spend more and send more.
An example is a September 2 ABC News/Washington Post poll. The pollsters were so blinded by their bias that all they could see was the federal governments response in the in the aftermath of Hurricane Katrina. Their questions focused on placing blame on President Bush and asked people whether the governments response left them angry; proud; ashamed; hopeful; or shocked.
A hallmark of our free market economic system is that when individuals work on pursuing their dreams, in this case rebuilding cities and states, the positive effects ripple throughout the economy. Together, those dreams lift a society. Its been widely reported that Home Depots stock value rose with the floodwaters. But the story behind that is exactly what USA Today reported on September 1: the companys massive effort to stock stores in the devastated region and to prepare for a speedy response. As USA Todays Julie Schmit wrote, Plywood makers are cranking up production. Contractors and laborers are lining up to enter the area. Retailers are redirecting products from as far as Wisconsin to the Gulf region.
Without a free economic market, the companies that can help the most wouldnt have the incentive to hurry to the scene. They know their products and services will be needed so theyre doing all they can to assist those who want to begin the rebuilding process.
Of course, plenty of companies arent solely concerned with demand for their products and services. Theyre going above and beyond to provide huge amounts of charitable assistance. In a commendable September 4 article, The Washington Post told the tale of corporate generosity in Hurricane Katrinas wake. The outpouring has included everyone from blanket manufacturers to wireless communications providers to toymakers. In addition to its quick response efforts, Home Depot and its foundation donated $1.6 million.
I hope Americans will notice that some of the often-maligned corporations which the media and the liberals hate for making money have given some of the biggest gifts. Wal-Mart pledged $15 million. U.S. drug companies have donated more than $25 million in cash and pharmaceutical supplies.
And what about the oil companies, whom the media continually vilify for profiting from gasoline? The Post reported that Exxon Mobil has pledged $7 million; ConocoPhillips and Shell $3 million apiece; Marathon Oil $1.5 million, and the BP Foundation $1 million. Guess where all that disaster-aid money came from? Profits from gasoline.
But will the media recognize that corporate profits are used for corporate charity? Its doubtful. They dont want to admit that Americas marketplace encourages success, which in turn allows the successful to be charitable. Its times like these when that truth is most obvious.
The generosity of individual American citizens and corporations was evident after the 9/11 attacks and the recent tsunami disaster. We are a country of compassionate, resilient and hardworking optimists, and we are proving that again as we seek to help those in need. When the people in Louisiana, Alabama and Mississippi rebuild, it will make the country stronger. Right now were beginning to forge new ties between Americans, as people from other states make sacrifices to get into the affected regions and help in any way they can.
Rebuilding is not a question of should we do it its merely a question of who will do it. What were about to see in the coming months and years along the Gulf Coast is a dynamic rebuilding process, and I just hope the media dont get in the way.
When the media look to the federal government to direct every aspect of American life, it is no wonder that their polls focus only on the federal governments role in the recovery from disasters. But if you asked me about the American peoples response, the answer would be clear: Im proud. And hopeful. And as long as we enjoy the incentives and the charity that abound in a free market society, I will continue to be hopeful about the future no matter what disasters come our way.
If you would like to make a donation to help those affected by the hurricane, please visit The Salvation Army or the American Red Cross.
Herman Cain is the former president and CEO of Godfathers Pizza, Inc. and currently is CEO and president of T.H.E. New Voice, Inc., a business and leadership consulting company. He is the National Chairman of the Media Research Centers Business & Media Institute.