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Are natural disasters good for the economy?
Posted on 8/20/16 at 1:46 pm
Posted on 8/20/16 at 1:46 pm
Obviously individuals and communities suffer during natural disasters but are they good for the economy?
On one hand, money is being spent now on demolition, construction, and other goods and jobs are being created. On the other hand, some people are out of work and disposable (and often times non-disposable income) that would have otherwise been saved or spent on a different economic sector (restaurant, entertainment, sports, etc.) is gone.
On one hand, money is being spent now on demolition, construction, and other goods and jobs are being created. On the other hand, some people are out of work and disposable (and often times non-disposable income) that would have otherwise been saved or spent on a different economic sector (restaurant, entertainment, sports, etc.) is gone.
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Posted on 8/20/16 at 1:56 pm to TypoKnig
Lots of broken windows
Posted on 8/20/16 at 1:57 pm to TypoKnig
Sadly they are. Just like a hurricane is great in my line of work but I feel bad because I don't want anyone to lose there life or homes.
Posted on 8/20/16 at 1:59 pm to TypoKnig
They can be. Localized, yes.
Posted on 8/20/16 at 1:59 pm to TypoKnig
To an extent, but I think there is a limit. New Orleans had a boom around 2010 and I think it may still be going, but to me, it still isn't like New Orleans prekatrina and probably never will be.
Posted on 8/20/16 at 2:01 pm to TypoKnig
i'm not going to say it's "good" or "positive" but infrastructure is one of the easier things to rebuild after devestation. this is more applicable to war, but it somewhat applies here, too
the issue with a lot of the areas affected by this flood is that the areas aren't really highly valued. when you have a bigger city like Nola get destroyed, the rebuilding effort can really remove urban blight and open up the door for gentrification (b/c there is demand for that real estate)
the issue with a lot of the areas affected by this flood is that the areas aren't really highly valued. when you have a bigger city like Nola get destroyed, the rebuilding effort can really remove urban blight and open up the door for gentrification (b/c there is demand for that real estate)
Posted on 8/20/16 at 2:05 pm to TypoKnig
Any measure of an increase in economic activity needs to be net of the damage caused by the natural disaster. A lot of assets were destroyed, which is not good for the economy.
Posted on 8/20/16 at 2:06 pm to TypoKnig
If flooded, broken or destroyed stuff is good for the economy, let's break the shite out of everything!
No. It's a fallacy. Particular entities might benefit, like furniture dealers but the vanishing wealth reduces prosperity.
ETA: While income may rise in the short run, the wealth base is much lower now and as the short run becomes the long run, you don't catch up.
No. It's a fallacy. Particular entities might benefit, like furniture dealers but the vanishing wealth reduces prosperity.
ETA: While income may rise in the short run, the wealth base is much lower now and as the short run becomes the long run, you don't catch up.
This post was edited on 8/20/16 at 2:14 pm
Posted on 8/20/16 at 2:46 pm to TypoKnig
For some people it's good, for most it's not. You don't increase the wealth of a nation by destroying property. Only a Keynesian would be goofy enough to think that.
Posted on 8/20/16 at 2:47 pm to TypoKnig
Gulfport still hasn't fully recovered from Katrina. It's not even a shell of what it once was.
So, no, not always.
So, no, not always.
Posted on 8/20/16 at 6:20 pm to TypoKnig
They're beneficial for the state's finances.
Katrina money initiatives are still being funneled through LDH's budget. A lot of the most recent budget problems are the result of increased spending on Medicaid that was from the influx of "one time" Fed money 10 years ago. Now that people have become accustomed to those "optional" programs, the legislature wont cut them, and has been increasingly scrambling for new funding sources.
Before the flood occurred, it was anticipated the legislature would be notified in October that the Healthy Louisiana program is experiencing an unforeseeable shortfall of about a couple hundred million. Fortunately, It appears there will soon be a new "one time" Fed insertion that should ease that pain.
Katrina money initiatives are still being funneled through LDH's budget. A lot of the most recent budget problems are the result of increased spending on Medicaid that was from the influx of "one time" Fed money 10 years ago. Now that people have become accustomed to those "optional" programs, the legislature wont cut them, and has been increasingly scrambling for new funding sources.
Before the flood occurred, it was anticipated the legislature would be notified in October that the Healthy Louisiana program is experiencing an unforeseeable shortfall of about a couple hundred million. Fortunately, It appears there will soon be a new "one time" Fed insertion that should ease that pain.
Posted on 8/20/16 at 6:28 pm to TypoKnig
destruction of assets is never good for an economy
they can be replaced by new assets but the equity in those assets is gone
sadly, those with full ownership of those destroyed assets will be the worst off
they can be replaced by new assets but the equity in those assets is gone
sadly, those with full ownership of those destroyed assets will be the worst off
Posted on 8/20/16 at 6:30 pm to TypoKnig
Its not good for the pockets of the people who lost everything, but it creates work, it brings in people from everywhere, and it gives retail a boost. Its good for the economy temporarily.
Posted on 8/20/16 at 6:55 pm to TypoKnig
Doesn't the Louisiana government pick up 25% of the FEMA bill?
Posted on 8/20/16 at 6:59 pm to TypoKnig
Posted on 8/20/16 at 7:06 pm to TypoKnig
It would be much easier to stomach if more had insurance. Folks will be buying flooring,furniture paying contractors w college funds and rainy day money. That far outweighs the boost to me.
This post was edited on 8/20/16 at 7:07 pm
Posted on 8/20/16 at 7:12 pm to TypoKnig
Do you even Bastiat, bro?
Posted on 8/20/16 at 7:17 pm to TypoKnig
Typically they are. Louisiana basically avoided the recession because of the amount of Federal dollars flowing in post Katrina.
Posted on 8/20/16 at 8:13 pm to TypoKnig
Good for the economy in the sense that it rebalances the wealth between laborers and professionals.
You'll have skilled laborers easily clearing 150k+ this year after the boom
It's more of a forced wealth redistribution than anything.
You saw a similar boom after Katrina.
You'll have skilled laborers easily clearing 150k+ this year after the boom
It's more of a forced wealth redistribution than anything.
You saw a similar boom after Katrina.
Posted on 8/20/16 at 8:25 pm to TypoKnig
Depends on how you look at it. Disasters are always great for one side and terrible for the opposite. Look at BP oil spill. Cleanup crews, businesses, oil containment all made thousands/millions. The fisheries industry however was devastated.
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