Natural Disasters and the Economy

Paper Summary:

This paper discusses how Hurricane Katrina was a perfect example of what a natural disaster can do to an economy. It looks at how natural disasters affect production and consumption of an economy in several major ways and points out that one way natural disasters disrupt production and consumption is the loss of jobs and displacement of a work force. Another way natural disasters disrupt production and consumption in he economy is a rise in the prices of certain goods and services. The paper also contends that one positive result of a natural disaster is the increase in jobs in other sectors connected to reconstruction, the flow of money into the economy, and increased production in the end due to the modernization of structures.

Outline:
Introduction
Natural Disasters
The Loss of Jobs and Displacement of the Workforce
Short Term Rise in Employment and Influx of Money into the Economy
Increase in Production from Modernization of Infrastructure and Capital
Conclusion

From the Paper:

"Moreover, natural disasters must occur in highly populated areas that are vulnerable to its forces in order to be considered a disaster. Thus, a wildfire or an earthquake in an unpopulated area would not be considering a disaster. Most of major U.S. cities are situated close to water sources such as oceans, rivers or, fault lines in the case of California. These areas are prone to natural disasters. As a result, their larger economies are at a high risk of being disrupted by a natural disaster and have a greater economic impact on the rest of the country."

Sample of Sources Used:

• Brue, Stanley L., and Campbell R. McConnell. Economics. 17th ed. McGraw-Hill/Irwin, 2006. 1-808.
• Cashell, Brian W., and Marc Labonte. United States. Government and Finance Division. Congress. The Macroeconomic Effects of Hurricane Katrina. 13 Sept. 2005. 17 July 2008 <fpc.state.gov/documents/organization/53572.pdf>.
• Chu, Kathy. "Homeowners Lose Katrina Insurance Flood Case." USA Today. 15 July-Aug. 2006. 20 July 2008 <(http://www.usatoday.com/money/industries/insurance/2006-08-15-katrina-legal_x.htm>.
• "Hurricane Katrina." Wikipedia. 16 July 2007 <http://en.wikipedia.org/wiki/Hurricane_Katrina
• Herman, Charles. "Katrina's Economic Impact: One Year Later." ABC News. 25 Aug. 2006. 17 July 2008 <http://abcnews.go.com/Business/HurricaneKatrina/Story?id=2348

More papers on Natural Disasters and the Economy:

• Term Paper # 125061 : "California and the Global Economy"
• Research Paper # 68763 : "Tourism and Calamity"
• Descriptive Essay # 110299 : "Disasters"

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