Introduction

A hurricane, or any natural disaster, can do an extreme amount of damage to the places it hits. “A Category 4 or 5 storm can lower U.S. production and increase unemployment. The U.S. coasts generate 40% of America’s jobs, which is why hurricanes can be the most economically damaging natural disaster. Although they can destroy towns and wealth, they usually leave a short-term effect on the economy. 

 D’Souza, Deborah. “Hurricane Dorian: Measuring the Economic Impact.” Investopedia, Investopedia, 18 Nov. 2019, www.investopedia.com/hurricane-dorian-4769192.

This image portrays the 10 costliest natural disasters in the US since 1980. 7 out of the 10 are hurricanes.

 

Damages 

It is estimated that hurricane damages are around 2.8 billion dollars every year, with Florida contributing to 55% of that. With an increase in the intensity of hurricanes due to climate change along and an increase in development along the coast, that number will increase with time. With such a high cost, the federal government pays for about 60% of it. Insurance, state and local government, and private individuals pay the rest. 

There are seven sources of damages from a hurricanes. These sources include wind speed, storm surges, extreme rainfall, location, time of year, preparedness, and most recent is global warming. In this chart from Thebalance.com, it shows how different wind speeds affect damages. 

 

Category	Wind Speed	Surge in Feed	Damage	Home Damage	Tree Damage	Power Outages
1	74-95 mph	4-5	Some	Some	Branches	Days
2	96-110 mph	6-8	Extensive	Major	Snapped	Weeks
3	111-129 mph	9-12	Devastating	Major	Snapped	Weeks
4	130-156 mph	13-18	Catastrophic	Severe	Toppled	Months
5	157+ mph	19+	Catastrophic	Destroyed	Toppled	Months

 

Amadeo, Kimberly. “How Florence, Harvey, Maria, and Other Hurricanes Battered the Economy.” The Balance, The Balance, 25 June 2019, www.thebalance.com/hurricane-damage-economic-costs-4150369.

 

Weak Job Numbers 

In 2017, the release of the September job report showed a decline of 33,000 jobs. This would mean a declining economy. However, this was inconsistent with other factors in the same report. “For the past twelve months, average hourly earnings have increased 2.9%” along with “a decline in the unemployment rate to 4.2% and a labor-force participation rate holding steady at 63.1%.” The number of weak jobs can be traced back to the short term effect of hurricanes Harvey and Irma on monthly economic data. Looking at annual data will give more a more accurate analysis. Hurricanes Harvey and Irma greatly affected large portions of Florida and Texas, which are 2 of the largest economic engines. When a hurricane hits, mainly services jobs are affected, but in response, rebuilding and repairing jobs replace them. The potential to bring in new jobs and boost the economy is high.  

My Opinion 

Overall, I think that it is difficult to predict the economy. We know that hurricanes cause significant damage to towns and can halt their daily functions, but, as we can see in the numbers, it brings in new jobs and can boost the economy. However, hurricanes are only going to increase in intensity as the effects of climate change are now being seen, and we don’t know how long the option of rebuilding will be there. This could potentially affect current economic data. 

 

 

References

Amadeo, Kimberly. “How Florence, Harvey, Maria, and Other Hurricanes Battered the Economy.” The Balance, The Balance, 25 June 2019, www.thebalance.com/hurricane-damage-economic-costs-4150369.

Avallone, Mark. “The Economic Impacts Of Recent Hurricanes And Tax Reform.” Forbes, Forbes Magazine, 12 Oct. 2017, www.forbes.com/sites/markavallone/2017/10/12/the-economic-impacts-of-recent-hurricanes-and-tax-reform/#d73d54a2371e.

D’Souza, Deborah. “Hurricane Dorian: Measuring the Economic Impact.” Investopedia, Investopedia, 18 Nov. 2019, www.investopedia.com/hurricane-dorian-4769192.

D’Souza, Deborah. “Hurricane Dorian: Measuring the Economic Impact.” Investopedia, Investopedia, 18 Nov. 2019, www.investopedia.com/hurricane-dorian-4769192.