In an article by Deutsche Welle, it breaks down exactly how the current wildfires raging across the Western US and Canada will likely have a lasting impact on the economy. Accounting for 14% of the US economic output, California is also being hit hardest by the fires. Along with Washington and Idaho that number is 19% of the country's economic output. Residents and businesses that were just now getting back to work from the Covid pandemic, are now shutting back down due to either dangers of impending fires or poor working conditions in bad air quality.
As over 5million acres have already been burned and at least 27 have lost their lives, how do you think Americans can best recover from natural disasters?
https://www.dw.com/en/economic-impact-california-wildfires-us-west-coast/a-54956210
Since California is such a large part of the US economy, these fires are not just affecting them but the entire country. If more people understood how this economic impact will hurt our country then maybe more people would put efforts into helping out and restoring it.
ReplyDeleteIt is truly so sad that California is suffering so much, especially with no recovery time from the pandemic. I think that with the recovery of the country, it will take even longer to get businesses and households back to normal and might take even a few years.
ReplyDeletei definitely agree with you Alex in that it is not just California that is going to be affected but the US as a whole and maybe even some of the global market because of how crucial and large California's economy is.
ReplyDeleteThe article touched on the possibility of some people moving and never coming back. If that happens with both people and businesses, it could take even longer for California to recover from the fires. Especially after already having a down year with the pandemic. Part of me wonders if California will be able to get back to 14% of US economic output if they keep experiencing fires every so many years. I also wonder what recovery will look like for Washington, Oregon, and Idaho, or how much quicker they will be able to recover compared to California.
ReplyDeleteThe California wildfires alone could spark a financial crisis. The fires could ignite a crisis by damages in home values, state tourism and local government budgets. The high risk designation of home values increases mortgage default risk. Lower home values in turn reduce cities' real estate revenue and could impact their ability to repay debt. Also, people aren't going to want to go to California for tourism with the damage of fires and bed air quality which also hurts their financial state. Recover from natural disasters is possible but it's just going to take time and money.
ReplyDeleteWhile these wildfires are bad, they will only get worse. With global warming occurring and climate change happening, these wildfires will only get worse. Not only will wildfires get worse, but so will large scale weather disasters, like hurricanes. These storms and disasters will cause heavily affect the US economy. If we have another Katrina level of disaster, then millions will be affected for many years to come, and some will never be able to recover.
ReplyDeleteIt is very unfortunate for California and the entire US this is happening and especially the time it is happening at. The destruction will leave lasting environmental and economic impacts on both the state and country. While there is not a lot we can do right now to help them recover, this is a time we should come together as a country and make sure to donate money and or supplies, to help rebuild the area. Some fiscal stimulus packages might help as well, but it is hard to say.
ReplyDeleteHannah had a great point I did not think about. It also needs to be considered about how many people and businesses are fleeing areas such as NYC and California. Less taxpayer money from the highest taxed citizens who can afford to leave, means that the infrastructure and funding needed to help fight these fires and other natural disasters.
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