Economic Recovery?

In the wake of Hurricane Katrina there is still much turmoil over the impact the disaster will have on the economy. According to government figures over 400,000 jobs have been lost, yet official feel that the economy should be able to absorb the blow. Further reports indicate that the economic growth may drop by as much as a full point during the second half of this year; however, the reconstruction may in fact stir the economy and be of help in the future. US producers still create goods efficiently, and foreign markets do not hurt our productions. Interest rates may continue to rise, but this issue will likely be decided by the economy’s reaction to recent events.
I think that the economy will recover from this and that the region can be rebuilt, but there is a lot of work to be done. Whether the local population wants to carry through with that may be another story. I mean people have faced disasters before, but with devastation so complete and having to rebuild a whole city from the ground up will the locals really want to rebuild or will many of them just disperse to other less ravaged cities in the area. How do you think the people of New Orleans and the areas affect by Katrina will react during the rebuilding period?

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