Hurricane Olesya Devastates Local Economy

Jorge Peñalosa
Economy 10th
Hurricane Olesya Devastates Local Economy:
The natural disasters are always a trouble for countries to reach an efficient economic, which means a growth. This week the Hurricane Olesya cross through USA, causing extraordinary effect in the population and economy. According to insurance companies, who have estimated the damage from hurricane Olesya are at $25 billion dollars. But the economic effect is much greater than that. One of the greatest issue is health related problems, such as diseases, environmental pollution and sewage mix in the cities are going to add to the problems that are affecting the labor sector. Another consideration to this factor is the loss of jobs because of the massive destruction, even though that the unemployment rate was around 6 percent the disaster causes that the entire population of some towns and even cities were completely unemployed.
The land is really affected by the effects of the hurricane, almost 90,000 square mile was the disaster zone, which is equivalent to area of Great Britain. As a consequence of the natural disaster the natural resources are considerably limited, causing that the economy is scarce to overcome of the situation. Different organizations have offered aid as well as UN, NATO and WHO, as a consequence of the state of emergency, incorporating economical help, including necessary sources (trying to substitute scarce of land). Also, as a consequence of this disaster, many companies and huge industries get in bankrupt as a consequence of scarce resources and the loses of capital.
As the four factors of production are affected the local economy from an enterprise, in terms of micro economics and a city or even a country like US can be devastated. Also, the economy can be affected by external factors that are too stronger, such as a natural disaster that can cause an unbalance in any economy causing a huge impact that can cause a depression for a considerable period of time.