Disasters ARE NOT boosters to the economy. Such remarks show the ignorance associated with why activity happens. It is not a ‘good thing’ that people have to expend billions of dollars to restore and replenish their lives.
But the spending of billions of dollars IS a boost to the economy. The economy is just the exchange of money for goods and services. An increase in that activity is a boost to the economy. If everyone had insurance who sustained damage, it IS a boost to the economy because you suddenly have thousands of people spending additional money on goods and services. It is not a PERMANENT boost to the economy, but it IS a temporary boost. When people are uninsured and don’t have money to spend to rebuild, or abandon their properties as happened in New Orleans after Katrina, THAT is what isn’t a boost in the economy. You had no increase in the spending for goods and services.
Disasters ARE NOT boosters to the economy. Such remarks show the ignorance associated with why activity happens. It is not a ‘good thing’ that people have to expend billions of dollars to restore and replenish their lives.
But the spending of billions of dollars IS a boost to the economy. The economy is just the exchange of money for goods and services. An increase in that activity is a boost to the economy. If everyone had insurance who sustained damage, it IS a boost to the economy because you suddenly have thousands of people spending additional money on goods and services. It is not a PERMANENT boost to the economy, but it IS a temporary boost. When people are uninsured and don’t have money to spend to rebuild, or abandon their properties as happened in New Orleans after Katrina, THAT is what isn’t a boost in the economy. You had no increase in the spending for goods and services.