Rock U.S. Like a Hurricane

Hurricane Irene made its way up the eastern seaboard over the course of last week, hitting some of the densest population centers in the United States. In the days leading up to the storm, governments and businesses took preemptive measures to mitigate any lasting damage, including closure of refineries, terminals, ports, and mass transit. The precautions taken indicate that the United States’ leaders have learned from past mistakes. Still, this is likely to be of little comfort for people in some affected communities who, almost a week after the storm, were still stranded and facing localized fuel shortages. The events following Irene have underscored how hiccups in regional supply networks can create a sense of scarcity, even when markets are theoretically amply supplied. Download here