Winter storm "Fern" is proving to be more than just a major weather event, it has become a significant economic disruptor. According to Newsweek, the storm is estimated to cause a $100 billion downturn in the U.S economy, making it one of the costliest winter storms. The affects nearly 200 million Americans, causing power outages, school and business closures, and massive travel problems. All of these directly affect consumer spending, causing a downturn in the economy.
Financial Institutions have estimated that this storm affects growth of GDP by reducing it around 0.5% to 1.5%. Although we will likely bounce back after the storm, it highlights the vulnerability of the U.S economy regarding extreme weather. Property damage is a large concern for the American public, enforcing the importance of strong infrastructure, highlighting the strength of investing in reliable and resilient buildings and emergency preparedness.
https://www.newsweek.com/winter-storm-fern-hit-us-economy-11417665
This is really interesting because it shows how something like a winter storm can affect way more than just daily life. I didn’t realize the economic impact could be as high as $100 billion. The point about business closures and reduced consumer spending makes a lot of sense, especially since so many people can’t work or travel during storms. It also highlights how important infrastructure and preparedness are, because better systems could help limit these kinds of economic losses in the future.
ReplyDeleteAfter this winter storm it is clear to me the impact weather has on the economy. This was not something I had previously thought a lot about, but I can now see the effect it has. I think it is important to invest more in infrastructure and programs to help after severe weather comes through. This makes me wonder if people and politicians will now be trying to push more policies focused on preparing for these extreme weather events.
ReplyDeleteIt makes sense that storm would cause a downturn on the economy but not to such a large size. I would've never thought it would equate to 100 billion hit to the economy. I wonder what countries with extreme weather do in these situations and if we could learn from them to not allow this drastic impact on our economy. I also wonder what everyday factors can play such a huge role in our economy that we don't think about like the weather.
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