What is Disaster Capitalism?


Disaster capitalism is a popularised term that refers to the generation of profits from the occurrence of a specific disaster.

The term disaster capitalism was first coined by Naomi Klein in her book, The Shock Doctrine which focused on the exploitation of national crises (disasters or upheavals) whereby various political parties seek to take advantage of the crises to implement new (questionable) government policies.

The standard dictionary defines Disaster Capitalism as:

(Economics) censorious the practice (by a government, regime, etc) of taking advantage of a major disaster to adopt liberal economic policies that the population would be less likely to accept under normal circumstances.

However, over time this term has been applied to general profit taking which has occurred as a result of any major crisis.

Disaster Capitalism within the Investing Space

Within the investing space, disaster capitalism is often referred to opportunities that present themselves after a major market crash, which can be from shorting certain investments to simply purchasing investments at rock-bottom prices.