Sandy cost the US $50bn, could have been averted for $15bn

Prevention is better than cure.

The FT's Jason Abbruzzese has posted the Moody's Analytics estimates of the economic damage of Hurricane Sandy. The firm puts the cost of lost output at $19.9bn, and the damages at a further $30bn:

Abbruzzese writes:

If the $50bn total turns out to be accurate, it will make Hurricane Sandy the fourth costliest US disaster behind Hurricane Katrina, the attacks of September 11, and Hurricane Andrew.

Putting a dollar amount on a disaster which has claimed nearly 100 lives in the US, and almost as many in the other countries throughout North America which have been hit, may seem distasteful, especially since the death toll is likely to continue rising. But that figure helps put in context stories like this, by Matthew Yglesias:

A 2009 seminar hosted at the Polytechnic Institute of New York University considered several options for major infrastructure upgrades to combat storm surges—a barrier at the south end of the Arthur Kill that divides Staten Island from New Jersey, an East River barrier to prevent surges up that narrow waterway, a barrier perpendicular to the Verrazano Narrows Bridge between Staten Island and Brooklyn, and most ambitiously a “Gateway Barrier System” stretching from Sandy Hook to the Rockaways. Engineers don’t believe it would be feasible for the Gateway system to entirely block storm surges, but it could weaken and deflect them—significantly reducing the flood risks to the entire New York Harbor…

It would, of course, be expensive. The estimates presented at the seminar suggest a ballpark figure of $15 billion. But even if that turns out to be a substantial underestimate, it’s a bargain compared to the cost of widespread flooding.

Compared to $50bn, that $15bn looks increasingly tempting.

Cars float in a flooded garage. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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What Labour's plotters are thinking

The ground may have shifted underneath Jeremy Corbyn's feet, at least as far as the rules on nominations are concerned. 

Jeremy Corbyn’s leadership has been rocked by seven resignations from his shadow cabinet, as the attempt to remove the Labour leader gathers speed and pace.

I’m told there will be more to come. What’s going on?

As I’ve written before, the big problem for Labour’s Corbynsceptics is that Corbyn won big among party members in September and his support has, if anything increased since then. Although a lot of ink was wasted over fears of “entryism” which at the outside probably contributed about a percentage point to Corbyn’s 40-point landslide, it is “exitism”  - the exodus of anti-Corbynite members and their replacement with his supporters that is shifting the party towards its left flank.

Added to that is the unhelpfully vague wording of Labour’s constitution. It is clear that Corbyn’s challengers would need to collect 50 signatures from Labour MPs and MEPs to trigger a leadership challenge, a hurdle that the plotters are confident of hopping. It is less clear whether Corbyn himself would have to do so.

But what appears to have happened is that Iain McNicol, the party’s general secretary, has received legal advice that he should not put Corbyn on the ballot paper unless the parliamentary Labour party does so – advice that he is willing to put his job on the line to follow. McNicol believes that the NEC – which has a fragile Corbynite majority on some issues but not on all – will back him up on this matter. (Significantly, at time of writing, none of the three frontbenchers who hold NEC posts, which are in the gift of the shadow cabinet not the party’s leader, have resigned.)

McNicol himself is currently at Glastonbury. Also on his way back from that music festival is Tom Watson, the deputy leader, whose political protégés include Gloria DePiero, who resigned earlier today. Stiffening the resolve of Labour MPs that they can pull this off and survive the rage of the membership is a motion of no confidence in Jeremy Corbyn passed by Wrexham constituency Labour party. The MP there is Ian Lucas, a respected MP from the party’s right, who is now on the backbenches but resigned from Tony Blair’s government in 2006 after Blair refused to set out his departure date.  That coup, of course, was organised by Tom Watson.

Watson is respected by Labour’s general secretaries, who are publicly supportive of Corbyn but many of whom would privately prefer to see the end of him. Crucially, they are even more opposed to John McDonnell, who has been a reliable ally to their leftwing opponents in internal elections.

As for party members, having called around this morning there is certainly some movement away from Corbyn, partly due to the Vice documentary and also due to the referendum campaign. My impression, however, is that the candidate they are looking for – someone who could have much of Corbyn’s politics but with greater political nous and the ability to bring together more of the PLP – doesn’t exist in the parliamentary party. There are some lower-ranked members of the 2010 and 2015 intakes who might fit the bill, but their time is far from ripe. It's also not clear to me how significant that movement away is in percentage terms - Corbyn won by 40 points and was 19 points clear of needing a second round, so his capacity to survive erosion is strong. 

Significantly, within the parliamentary party's three anti-Corbyn tendencies, “the let him fail and strike once” and the "we're stuck with him, keep quiet and do other things" factions are currently recessional and the “strike and strike until he gives up” faction is ascendant, adding to the pressure on the leadership, at least temporarily. The prospect of what may be a winnable election post-Brexit with a different leader - as one MP said to me, "Angela [Eagle] is not that good but she is good enough [should Brexit trigger a recession] - has Corbynsceptics less inclined to write off the next election. 

At the start of the year, I thought that no attempt to replace Corbyn before the election would work. That's still my “central forecast” – but a bet that looked more reliable than a ISA now looks rather shaky.

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.