Katrina Recovery Stagnating?

The Brookings Institute's Katrina Index, which is still performing the invaluable task of tracking the Gulf Coast recovery, reports today that inadequate public services seem to be slowing down the pace of the recovery in New Orleans. Bad public services have may caused stagnation in the housing market particularly, as former residents have been reluctant to move back to neighborhoods that lack adequate sanitation, electricity, gas and water services. These interdependent trends may lock in a cycle of slow growth. If no new residents show up, why should the city build better public services? Yet, if public services aren't built, why would anyone want to move back? Even now, 1+ years after the hurricane hit, letting the market do its thing won't rebuild New Orleans. Breaking this cycle would seem to require more public intervention. Furthermore, the federal government and local governments have shut down a few key sources of information on the recovery. Interestingly, as long-term recovery problem solving continues, available data to measure the housing, economic, and social recovery on the ground appears to be slowing. For instance, the Bureau of Labor Statistics has stopped reporting data on the status of evacuees while some local entities have temporarily stopped or slowed reporting on noteworthy data such as home sale prices, public transportation ridership levels, current level of utility customers, and the opening of new restaurants.
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