Sandy Jackpot

While super storm Sandy destroyed much of the New Jersey shoreline, there was a 5.1-mile stretch that was spared.  This year, an $18 million project was completed to rebuild the beach and dunes in front of 30 casinos that line the Atlantic City coastline:

“The government has protected their cash cow, the casinos, at the expense of the people,” said Edsel Coates, 57, whose home near the inlet flooded and roof caved in. “The casinos are receiving preferential treatment and there’s neglect of the average Atlantic City resident.”

 25% of the residents of Atlantic City live in poverty. That is 16% higher than the state average. They are subject to the negative effects of rent-seeking by the casinos. While the casinos were able to lobby the state and federal government for the funds required to protect their beachfront properties, Atlantic City’s largest and poorest neighborhood had their seawall project delayed. The project is scheduled to start soon but the damage has already been done. Problems like this will continue because the casinos will always be able to commit more funds to rent-seeking than the impoverished neighborhood can. What is sad is that, even though the result lacked morality, rent-seeking in this case was technically efficient because, monetarily, the group that benefited the most from the rent received it.