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To: technomage

Although it makes no sconomic sense (the fallacy of the broken window), there is a perception among the public and the news media that such disasters are good for the economy because they "create employment" fthrough the need for massive reconstruction.

I remember reading years ago this very idea in Time Magazine, which wrote that the bright side of Hurricane Andrew was that it stimulated the economy by creating work for the construction trades, which then presumable filters through the economy.

As I say, the argument is economic nonsense, but nevertheless many see it that way.


15 posted on 08/14/2004 9:43:20 AM PDT by Maceman (Too nuanced for a bumper sticker)
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To: Maceman

I'll tell you one thing...hurricanes boost certain retail industries.

Plywood was flying off the shelf in Home Depots. Some Home Depots that weren't 24 hour stores were still staying open for 24 hours and they were shipping in plywood and supplies from other areas.

Florida merchants have gotten smarter at least as far as the retail industry that provides needed hurricane supplies, IMHO.

The grocery stores never ran out of bottled water, the home depots never ran out of plywood, the batteries seem to be in good supply, there was tape available.

A few years ago if there had been a hurricane threat, if you didn't get water and groceries a few days ahead...there wouldn't be any.

Also the hotel industry in central Florida must have done a huge business because of people fleeing inland from Tampa Bay.

As far as the Tampa Bay area, businesses closed up for 1/2 a day, so that is all the revenue that was lost.


30 posted on 08/14/2004 9:51:09 AM PDT by dawn53
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