Tuesday, September 21, 2010
Let the Bed Bugs Bite
According to articles in both the New York Times and Wall Street Journal today, bedbugs are making a comeback in the U.S. Here is the NY Times link: With Bed Bug Hysteria, Many See Opportunity. This has lead to a whole new industry full of invention and job creation to stop the spread of bedbugs. When I read stories like this, I wonder if governments are ever tempted to create such "mini-epidemics" to stimulate economic growth. When you think in business terms, it is a great way to spur industry. One can easily create value in a market, as people are quick to act when they think their health is at risk. Likewise, like moths to a flame, entrepreneurs flock to such epidemics as just the opportunities they seek. Consumers may never be at quite as much risk as they assume, but will generally walk away satisfied with their purchase because they feel they were able to act in order to maintain their health. Think back to the swine flu epidemic that struck last year. The danger never reached anywhere near the pandemic level the public was lead to believe was possible. Yet, I am sure vaccine manufacturers made out very well financially. Government and public officials have the power to create a whole new industry just with a few strong health warnings.
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