The two most recent hurricanes that have ripped through the south has caused a lot of damage to many homes and businesses. The Fed has however stated they don't expect the economy to alter much from its normal growth track. The central bank after a two day policy meeting says they see unemployment falling to the 4.1 percent area and economic growth rising which is to be expected from all the rebuilding taking place. The higher fuel prices in the south has caused some inflation but they expect it to fall back down to the normal 2 percent area.
While it is tragic what has happened to so many people who have had to uproot and move because of the storms, as they return they can look forward to economic growth in their area with plenty of chances for employment.
https://www.cnbc.com/2017/09/20/fed-says-hurricanes-will-have-no-lasting-economic-impact.html
I have to wonder when this no impact will kick in - these areas will be impacted for at least a couple of years while they physically re-build the cities. How long-term are they talking here?
ReplyDeleteI agree there might not be a lasting impact in the long-run; however, there is definitely an impact in the short-run. Many people have been left without their homes, electricity, or their vehicles for transportation. Without these necessities, it will be difficult for people to continue their typical day-to-day tasks.
ReplyDeleteI agree and to add on to Duncan's comment, not only that houses are destroyed but also the tourism industry in the Caribbean. Many people from the Caribbean are relying heavily from tourism and from this could cause many workers to be out of jobs for a while as well.
ReplyDeleteI have noticed the fuel prices are becoming normal once again. It will take some time for people to recover because their homes have been damaged. I believe for the smaller islands it will have more of a long term impact depending on if they cannot afford to fix all the damaged caused.
ReplyDeleteThis article is interesting to me. I read that the Fed has actually predicted lower unemployment rates and has predicted higher economic growth numbers. I think these hurricanes will only have a short term effect on the economy, rather than a medium or long term influence.
ReplyDeleteI agree with what Madeleine said in the first comment. They can predict that it has no lasting impact, but when will that be? Weeks, months, years? I see it being years. So much damage has been done and it takes awhile to rebuild from a hurricane of that caliber. I read part of an article on the damage hurricane katrina did and after 10 years (back in 2015), New Orleans still has a long way to go. Some say it can take up to 20 years to fully recover from a hurricane like Katrina. Florida won't be the same for quite some time.
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