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re: Are natural disasters good for the economy?
Posted on 8/20/16 at 6:49 pm to Carville
Posted on 8/20/16 at 6:49 pm to Carville
As mentioned previously, it will encourage money being moved from one person to another, and that can create both business and economic activity at levels elevated for certain people.
In the long run, though, its just re-establishing the stable base of property and capital investment that existed before the flood-- the window owner lost the value of the window to his structure, when the window broke-- replacing it doesn't make it more valuable.
And, in the longer run, those assets allocated to rebuild would have been allocated for other uses, instead of sunk into rebuilding.
In the end, its a net negative that keeps hands busy in the short and intermediate term.
In the long run, though, its just re-establishing the stable base of property and capital investment that existed before the flood-- the window owner lost the value of the window to his structure, when the window broke-- replacing it doesn't make it more valuable.
And, in the longer run, those assets allocated to rebuild would have been allocated for other uses, instead of sunk into rebuilding.
In the end, its a net negative that keeps hands busy in the short and intermediate term.
1
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 7:13 pm to rilesrick
quote:
Folks will be buying flooring,furniture paying contractors w college funds
I would argue that less kids going to college is a good thing.
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 7:19 pm to elprez00
quote:
Louisiana basically avoided the recession because of the amount of Federal dollars flowing in post Katrina.
I think the 2007-2009 housing bubble sort of "filled" with actual demand on the north shore and Baton Rouge after the storm. Of course that was just people in Louisiana moving around and not actual growth. I don't think people will move around permanently after this event in large numbers though.
I think it's a good debate. As far as the family who has {insured} damage to their home and have to replace a couple of cars.....maybe their spending will be a positive thing for the local economy short term.
This post was edited on 8/20/16 at 7:22 pm
Posted on 8/20/16 at 7:21 pm to dewster
Yeah but there was a ton of money being thrown around. Money brings construction. Construction brings workers. Workers require infrastructure.
Posted on 8/20/16 at 8:05 pm to BoardReader
Money is spent, but resources are lost
Posted on 8/20/16 at 8:11 pm to elprez00
This is an interesting philosophical argument. Every Louisianan is American, but who's "economy" is being considered? America's or Louisiana's? As long as the US remains solvent, pulling max government assistance for is a great boost to the state's economy.
Where's IB? Federal disaster money must have a more positive impact on the local economy than movie tax credits. When you consider everyone in the state pays taxes that contribute to the state's general fund, the ROI on Federal money for residents is even more impressive.
Where's IB? Federal disaster money must have a more positive impact on the local economy than movie tax credits. When you consider everyone in the state pays taxes that contribute to the state's general fund, the ROI on Federal money for residents is even more impressive.
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 8:14 pm to TypoKnig
quote:Your agreement isn't really required.
I'm not sure I agree with the Broken Window Fallacy
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.
Posted on 8/20/16 at 8:32 pm to TypoKnig
There's really only 2 "good" things that come from a natural disaster.
1. Typically communities come together and help each other out and put all the other bullshite that we allow to divide us aside and our humanity and compassion comes back for a little while.
2. Transactions of cash and goods and an influx of federal disaster dollars along with insurance payouts helps move inventories for a bump in revenues but the net is a negative in production in most cases. So the quick uptick in economic velocity is more of a mask than anything.
1. Typically communities come together and help each other out and put all the other bullshite that we allow to divide us aside and our humanity and compassion comes back for a little while.
2. Transactions of cash and goods and an influx of federal disaster dollars along with insurance payouts helps move inventories for a bump in revenues but the net is a negative in production in most cases. So the quick uptick in economic velocity is more of a mask than anything.
Posted on 8/20/16 at 8:39 pm to TypoKnig
Another state's economy usually. But no, insurance premiums rise, building material prices go up, resources that would have been spread out are now centralized in mostly one industry, people have to pull from things like savings/retirement to get back on track - later becoming an economic burden, etc. There are probably a hundred other things that could be listed.
Posted on 8/20/16 at 8:56 pm to Scooba
"The fisheries industry however was devastated."
In what way exactly? At least not everyone suffered. I know a couple shrimpers. One took the two years off after BP because he was paid what he would have made anyway. The other was paid plus decided to hire out his boat $$
In what way exactly? At least not everyone suffered. I know a couple shrimpers. One took the two years off after BP because he was paid what he would have made anyway. The other was paid plus decided to hire out his boat $$
Posted on 8/20/16 at 11:27 pm to Mr. Hangover
Ughhhh
Posted on 8/20/16 at 11:36 pm to TypoKnig
What about companies that will just move their corporate offices to other states now? Or companies that had before considered LA as a corporate location and now are rethinking that?
Part of NOLA's recovery after Katrina is they are a city known and loved from all over the world. People all over the world wanted to help the city recover.
Part of NOLA's recovery after Katrina is they are a city known and loved from all over the world. People all over the world wanted to help the city recover.
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