Posted on 09/09/2005 5:48:26 AM PDT by Happy2BMe
9 September, 2005
6:41 a.m. EST
Secretary of Labor Elaine L. Chao just declared on FoxNews that one of the good things that will come in the aftermath of Hurrican Katrina will be a huge construction boom in the states hit hardest by the storm.
"There will be a huge construction boom in the wake of Hurrican Katrina that will create thousands of jobs for Americans."
I've been waiting for the policitians to start mouthing the same broken window fallacy they always do in times of disaster. Do we really believe that disaster is great for the economy? Destroying billions of dollars in property (not to mention lives) generates a net profit? If so, then why not nuke San Francisco to really get the economy rolling?
Thats right. Our tax dollars will pay for it.
"Everybody gets a chit for $250,000 ..." John Stossel.
This is the very definition of voodoo economics. The people of New Orleans, surrounding areas and the American taxpayers have seen at least $100 billion of wealth that in many cases took generations to accumulate destroyed in a few days and we are supposed to be happy that it will create a bunch of construction jobs that will mostly be filled by Mexican illegals?
The best thing they could do is make all the citizens of NO who are able to work in the rebuilding effort. Pay them a decent wage and make them work and gain a sense of worth and purpose.
Not entirely...
Don't forget your insurance premiums.
Yep.... I would bet the government at some level ends up pumping a trillion dollars into the economy over the next 5 to 7 years. The stock market is going to like this a lot.
The same holds true for wars. WWII lifted us out of the Depression.
Will they be filled by Americans, or ILLEGAL aliens undermining our national employment?
I, too, have been waiting for politicians (or those who work for one) to mouth these kinds of platitudes. Of course, there is no economic benefit from a city being destroyed. That's an absurd statement, and no economist that doesn't work for a politician would dare utter such nonsense.
Taxpayers, and insurers (who will pass along the cost to their pool of insured), will all pay for this.
If what Cho said was true, then government would be doing the classic "dig a hole and fill it up" kind of economic policy all the time.
To quote the Lovin' Spoonful, "Don't bank on it, baby."
Building boom? Guess Unemployement is going down in Mexico.
Dear PEI Member:It has been a little over a week since Hurricane Katrina pounded its way across Florida into the Gulf of Mexico, on its way to causing one of the worst natural disasters in American history. The damage to the Gulf Coast and the city of New Orleans in particular is truly catastrophic. At least half a million people have been forced out of their homes to take refuge with family and friends, or in shelters prepared by the American Red Cross and government agencies. Among those are friends and co-workers within the petroleum equipment and marketing industry, including some PEI members who live and work in that area. When compared to the problems faced by these individuals and families, the issues that the petroleum marketing industry must overcome seem minor. Yet, it is imperative to that region of the country that every effort be made to return the petroleum marketing industry back to order. And so, while many PEI members and their customers push to keep this industry going in the Gulf Coast, our hearts and our prayers stay with those who have lost so much.
- Employee displacement obstacles.The problem of widespread displacement of personnel in the Gulf Coast is made worse in this disaster since many workers cannot return to the region because they have no place to live. We have been able to contact 57 of our 59 members that have offices in the three-state region and are not aware of any deaths or injuries among our members or their immediate families in the affected areas. We know we have members who have lost homes and a few who have lost their offices. We also have members who still don't know whether they have lost homes.
- Equipment needs. The lack of power needed to run submersible pumps has caused a run on aboveground skid-mounted tanks and 12-volt transfer pumps. Members as far away as Wisconsin and North Carolina have told us they have sold all the aboveground tanks they had in stock. Dispensers are being repaired one by one. Equipment that spent time under water is slowly being replaced. Canopy work has just begun.
- Business in the area is booming. Service technicians worked through the Labor Day weekend trying to get fueling sites back up and running again. Fueling equipment for FEMA and other emergency teams/fleets has been in great demand. One distributor near the area told us that he sold as much equipment in two days as he sold in the previous three months. Insurance adjustors are just now beginning to make inspections and release money to repair/rebuild the facilities.
- Half-pricing. Gasoline has seen a spike to a record national average of $2.86 a gallon last Friday, and $3 a gallon gas is now common in many markets around the country. There are an estimated 15,000 to 25,000 retail stations around the country with mechanical dispensers still in use. Most have V-R 2002E mechanical computers which will price to $2.999 per gallon. Most weights and measures officials will permit half-pricing as long as the customer has gear kits on order. A few states will permit half-pricing indefinitely, as long as certain signage rules are met. Members should check with their weights and measures officials to understand what procedures their customers must follow.
Insurance coverage: $40 BILLION
Taxpayer coverage: $60 BILLION
(There is plenty to go around.)
Senate Joins House in Approving 52-Billion Dollar Hurricane Aid Bill
Thanks for that info!
Right--another famous myth. The recovery happened after WWII, when price controls were lifted.
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