Economics Effects of Superstorm Sandy
This report examines the immediate and continuing economic effects of hurricane Sandy that struck the North Eastern Region of the United States of America, specifically New York, and New Jersey in late October of 2012. Several articles from national and regional news agencies were used to compile the facts pertaining to the economic conditions of the region as well as the implications on the national economy. Studies indicate that the economic effects of hurricane Sandy has caused loses totaling over $50 billion dollars however, there is evidence shown by some studies to be a large amount of positive economic growth and activity that has been generated from the destruction of the storm. This report will analyze the economic trends on a regional as well as national scale and then determine if the damaged caused has provided enough stimulus to out-weigh the negative economic impacts that have stemmed from this disaster.
In October of 2012, the eastern seaboard of the United States of America saw one of its most cataclysmic natural disasters in recorded history. Hurricane Sandy also known as Superstorm Sandy caused mass power outages, loss of homes as well as cities and economic destruction that is still being tallied over a year later. The nation watched, as power was lost from the Carolinas all the way to Maine and saw homes swept out from their foundations. The following essay analyzes the immediate as well as continuing economic effects both negative and positive on the North Eastern region of the United States specifically New York and New Jersey as well as the ripple effects felt through the rest of the nation’s economic environment. Storm Overview
Before the analyses of the economic impacts caused by Hurricane Sandy are to be conducted it is important to understand the severity of the storm. Understanding the timing of the storm during the calendar year plays an important role, as does the overall size of the storm in regards to the amount of destruction caused. The government website for the National Aeronautics and Space administration (NASA) gives a detailed comparison to Hurricane Katrina which caused massive destruction to New Orleans, Louisiana in August of 2005 and Hurricane Sandy. According to NASA the two storms began as tropical storms that drew their power from the warm waters of the tropics; however, at landfall Katrina continued as a “tropical cyclone” while Sandy merged with a storm front from the west and created what NASA deemed to be an “extra-tropical cyclone”. (Volland, 2013) The difference between the two is mainly a huge increase in power and width (See Appendix A). Katrina remained in the Louisiana area at landfall with concentrated high winds while; Sandy expanded rapidly covering almost twelve states at one time with winds of the same speed. By comparing these two storms, there’s no thought of one being worse than the other, but the significant difference in their size and power is noteworthy. The timing of Sandy plays a crucial role in the state of the economy because, as reported by the Federal Emergency Management Agency, the touchdown of Hurricane Sandy first appeared on Sandy on October 29, 2012 and response as well as recovery lasting until November 21, 2012. The major importance of the timing is many people being put out of work as well as losing everything they own directly before the economy is to be stimulated by the holiday shopping season. This caused a massive drop in sales from several strong companies that typically do not see such a decline this time of year. Immediate
It is important to consider the debate of the argument of whether this disaster had more positive or negative economic effects that the major economic implications of a natural disaster are in large part negative in the immediate time period following the event. The immediate analysis of the economic...
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