Sunday, September 11, 2005

Katrina, Could this break the bank?

Hurricane Katrina could be the most expensive natural diaster ever. The costs right now are over $100 billion and are expected to go well over $300 billion when all is said and done. Over the last four years, the US government has spent around $300 billion on the two wars in Iraq and Afghanistan. Some people argue that this is great for the economy because it will create jobs and businesses will benefit with an increased work load. However, who is paying for all of this? It is the US government. The weekend after Katrina struck, the government was cutting checks that added up to about $2 billion a day. I am just wondering where all of this money is coming from and how will it effect the status of the US economy. So is this really going to "help" out the US economy or are we going to begin a downward spiral?

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