Two large hurricanes hitting the U.S. within two weeks of each other means massive amounts of damage that needs to be covered by insurance companies. RMS, a company that estimates catastrophic damage, estimated between $25 billion and $35 billion in losses that will be covered by insurance from Harvey alone. The RMS is waiting to release their estimates on Irma since the storm’s path is still in flux, however another catastrophic modeling firm known as AIR Worldwide estimates between 15 and billion worth of insured losses due to Hurricane Irma. Property damage is not the only concern because Irma and Harvey hurt the job market which leads to a slowing short term economic growth. We have learned from the past that natural disasters don’t usually hurt the economy in the long run. The U.S. economy may slow in the third quarter briefly but any dip in the economy won’t last long.
http://money.cnn.com/2017/09/10/news/economy/hurricane-irma-harvey-economic-damage/index.html?iid=hp-toplead-dom
Even though the economy will heal without any real damage the states and people affected will have a hard time recovering. It took nearly 10 years for Louisiana to recover completely after Hurricane Katrina.
ReplyDeleteWhy is it that natural disasters tend to not effect the United States economy for the long run? With emotions and infrastructure being forever changed by these recent catastrophes why isnt the economy as well? Also theres like 3 natural disasters happening all at once right now.. will these be enough to effect economy in the long run either in the US or elsewhere globally?
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