Profiting off the flood disaster

IN LATE March, President Obama declared Rhode Island to be the site of a national disaster due to extensive flooding, up to 9 feet in some areas.

Under the Declaration of Disaster that Obama signed on March 29, provisions were made for FEMA to come to the state, set up disaster-relief sites and deliver aid promised to those affected by the flooding. This was the story widely circulated through the mainstream media--that Obama had not "repeated Katrina."

However, this is not the entirety of the story by any means. From both the causes of the flooding to the fallout from it, many Rhode Islanders are in shock.

The only major newspaper in Rhode Island, the right-wing Providence Journal offered its neoliberal analysis, stating that the cause of the infrastructure failing was due to lack of maintenance because state workers were "draining the coffers" of the state for decades. Nothing could be further from the truth.

Rhode Island has suffered a serious budget crisis with massive gaps for the past decade, leading to lack of maintenance in its infrastructure and cuts to social services. These budgetary issues stem from a neoliberal agenda that has been pushed hard by the Democratic-dominated state legislature and the Republican Gov. Don Carcieri.

The state has offered an endless amount of tax breaks to the rich, including an elimination of the luxury tax, implementation of the flat tax (which disproportionately affects workers) and 10-year tax-free provisions to entice companies to station themselves in the state.

Not only have both the national and local papers failed to sufficiently and accurately cover the contributing causes to the damage, but they have also neglected those who are left behind in the aftermath.

Many residents were forced to evacuate their homes due to the flooding--many had water almost up to the circuit breakers in their houses. The very small numbers of shelters that the state had set up in the midst of the flooding soon proved to be inadequate for the number of people who were forced out.

But all hope was not lost. Local businesses (hotels especially) were more than happy to accommodate the flood victims--but at a steep price.

WORKING IN a hotel, I have seen firsthand the massive amounts of profit that have been made and the absolute callousness when it comes to pursuing profit in the midst of what is truly a devastating crisis for so many.

The average rate per night at the hotel where I work at is $99.99. Flood victims were offered a rate of $79.99--a measly $20 dollar discount that is still very pricey for the majority of people who live from paycheck to paycheck.

A number of people called the hotel to ask what the rate was. When they were honest and stated that they could not afford to spend $80 a night, I was told specifically not to offer anything lower and to turn away any individual who couldn't pay.

What was more sickening was speaking with an elderly man who was a victim of the flood and is staying at the property. He told me that he couldn't afford too many $80 nights since he is on Social Security, and pleaded with me to let him stay at a cheaper rate or even to let him work it off doing maintenance for the property.

What is even more gut-wrenching is that while victims of the flood, who cannot go back to their homes and have to pay for all of this out of pocket, are struggling to come up with just one more night's stay worth of money, Federal Emergency Management Agency (FEMA) employees--the very people sent to help and assess the situation--are receiving a cheaper rate. This doesn't even remotely compare to the fact that both Bechtel and Textron, two war contractors based in Providence, receive rates that are $45-50 for a night's stay.

What makes this situation even more unbelievable is that there are a vast number of other hotels in the area that are charging absolutely exorbitant rates of $150 per night.

Overall, the "relief efforts" of this crisis have been a field day for private enterprise and businesses. There are a number of advertisements being featured locally telling residents that they cannot move back into their homes if their boiler, water heater, circuit breaker or other important utilities were affected--until they hire someone to come inspect them (paid out of their own pockets).

FEMA has promised that they will give people vouchers for their hotel stays and reimburse them for the cost. But the agency has also made it clear that the grants the agency provides for home repair typically don't cover basements, bedrooms and bathrooms unless they are "essential"--meaning not a guest bedroom or an extra bathroom.

With a promised number of six disaster relief stations, only one is set up so far. With over 12,000 Rhode Islanders already filing for relief and only 96 FEMA inspectors to assess the damages to those claimants' homes, the "relief" is not going to come soon enough.