Emergency capitalism is the generation of profits based on disasters, such as natural disasters or marketing products in an anxiety-generating way. Proponents argue it is no different from promoting any consumer product, while detractors say it can be politically motivated and generate fear to justify certain actions.
Emergency capitalism is a term that refers to the generation of profits based on the occurrence of some kind of disaster. The term was first coined by Naomi Klein in her work The Shock Doctrine and focuses primarily on large businesses seeking to create products that consumers buy out of fear of some kind of potential or impending disaster. Over time, the term disaster relief capitalism has been applied to profits made due to deforestation, during and after a natural disaster, and even in marketing products in an anxiety-generating way that can only be alleviated by consuming a certain product.
In many cases, disaster relief capitalism stems from marketing efforts aimed at preying on insecurities or fears that consumers harbor. For example, an insurance company may use the graphical representation of the after effects of a tornado or flood as a means of encouraging potential customers to purchase insurance coverage that would protect them should such types of disasters occur in their areas. Similarly, a business that sells camping equipment and supplies may participate in a marketing campaign that emphasizes preparedness in the event that access to water, electricity, and other utilities is disrupted after a hurricane or even some kind of man-made disaster. With each scenario, the idea is to conjure up images in consumers’ minds that are alarming, creating concern and tension, then offer the solution in the form of a product or particular product line.
Proponents of disaster capitalism often point to the fact that while the techniques used to get consumers’ attention can be quite intense, they represent events that happened in the past and could happen again, given the right circumstances. From this point of view, promoting the purchase and correct use of goods and services is not considered different from the promotion of any type of consumer product. From this point of view, this approach to generating revenue in a free market situation is nothing more than identifying a need and offering the means to satisfy that need.
Detractors of the concept of disaster capitalism sometimes note that there is more to work than simply enjoying the benefits of a free market. Sometimes, the motivation can be as much political as it is economic. This unique hybrid of political economy is based on creating the illusion that if a certain approach is not adopted, the consequences will often be dire for generations to come. By generating fear, the hope is that consumers will make immediate decisions rather than evaluating the evidence for themselves and determining whether a particular product or approach is indeed the answer, or whether another solution would produce equally effective results. This approach can be used to justify the creation of a government initiative or even to advocate abolishing a given initiative, depending on the goals of the individual or group supporting the action.
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