How Will Hurricane Sandy Effect Our Economy?
Although Hurricane Sandy has left a devastating path behind, economists believe damages will not approach those caused by Hurricane Katrina. Sandy’s estimated losses currently stand between $30 to $50 Billion, whereas Hurricane Katrina back in 2005 caused a financial blow of over $100 Billion in damages. Nonetheless, Hurricane Sandy may still be considered the second worst hurricane in the history of the United States largely due to its focal point striking one of the most densely populated areas of the country. Power outages and public transportation shut downs have crippled businesses on paramount levels. According to the Department of Energy, Sandy knocked out energy to more homes and businesses than any other storm in U.S. history.
But Is There A Silver Lining?….
Despite the impact that has devastated the East Coast and its people, the recovery process is sure to boost the GDP in the upcoming months. Homes, buildings and companies will have to be reconstructed, and in most cases see a more modern face with stronger foundations. The rebuilding will generate jobs and demand for goods, supplies, and services offering a leveling-off of the major economic interruption. How quickly the capital stock, as well as New Jersey & New York’s transportation infrastructures take to rebuild could directly effect how fast the regional economy bounces back.
So, while we may be down now, we’re not out! Although the economic rebound will take some time, it inevitably will follow with hopes of clearing much of the economic debris that Hurricane Sandy left behind. And we must not forget that in times like these our Great Nation must come together and redefine what “United” means once again.
For more in depth information on the economic effects of Hurricane Sandy please visit the US News and Forbes websites below.