Hurricane Sandy could pump in tens of billions of dollars to US economy

http://articles.economictimes.indiatimes.com/2012-10-31/news/34837371_1_allstate-total-economic-losses-insurers

This article not only adresses the fact that Hurricane Sandy caused damage to the US economy by tens of billions of dollars, but rather argues that the recovery in the future will pump money back into the economy. This will eventually help boost the economy, in a much needed time. The author however warns not to get too excited about the boost the reconstruction/ recovery will provide, as the effect from this will take years to flow through to sales. Although it is hard to estimate the dollar amount the recovery will provide the economy, the author uses the actions of insurers and bigger companies to estimate it to be around 80% of total economic loss.

1 Comment »

  1. Tess VS Said,

    November 29, 2012 @ 3:27 am

    I think this is an interesting concept to think about, how a natural disaster could aid the economy in the long run. Obviously, (as the article states) the initial effect of the storm does damage to the economy but after the storm, shoppers are driven to make purchases to replace goods that they once had. These goods are limited sources which drives up the price when there is a high demand. Another interesting point that they brought up was that other less used industries may start to be used more, like trains which were used after the storm because air/ground transport was down. (They were used mostly for transporting medicine). All in all I thought this article was interesting and I hadn’t considered how a natural disaster could boost the economy in the long run.

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