Morici: Big Freeze, Storms Impose Losses Up to $40 Billion, but Economy will Rebound
Buildings will be repaired and improved, and that adds, not subtracts from GDP. Some property owners will undertake improvements to better fortify against cold weather and ice they had previously not considered.
First quarter GDP will likely be about 0.2 or 0.3 percent lower, but most of that will be made up in the second quarter.
Big storms and freezing temperatures make fascinating news: witness the success of the Weather Channel and cable news stations when major storms rumble through. But American businesses and consumers are enormously resilient.
Like a tennis star suffering a sprained ankle, the U.S. economy will soon be back on its feet with as fierce a backhand as ever.Peter Morici is an economist and professor at the University of Maryland Robert H. Smith School of Business. Follow @pmorici1 This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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