Long-Term Economic Impact of Hurricane Sandy
Follow @PMorici1All of this is not to discount the direct costs to individuals by temporary, and in some cases permanent, disruption to lives and communities, much of which cannot be quantified. However, when government authorities facilitate rebuilding quickly and effectively, the process of economic renewal, in many tangible ways, can leave communities better off than before. Factoring in the multiplier effect of $15 billion to $20 billion spent rebuilding yields an economic benefit from reconstruction of about $27 billion to $36 billion. Add to that the gains from more modern and productive capital stock-likely in the range of $10 billion-and consumer and business spending that is only delayed but not permanently lost -- likely in the range of $12 billion -- and the total effects of natural disasters of the scale of Sandy are not as devastating two years down the road.
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