Katrina's Effect on the Economy
A recent report from the Labor Department incidcated that the unemployment rate for the United States dropped from 5 percent to 4.9 percent, the lowest it has been in four years. The report also indicated that the hourly wages have increased by 2 cents. While the unemployment rate is decreasing the amount of jobs being created are also decreasing. For instance, in July 242,000 jobs were created compared to 169,000 jobs in August.
This report came out the week of August 12, meaning the effects of Hurricane Katrina were not factored in. The rising costs of gasoline and energy prices could have a large impact on the nation's economy.
What do you think? What effects on the nation's ecomony do you think are to be expected from the hurricane?
1 comment:
Grant, your comment reminds me of the Broken Window fallacy (http://bastiat.org/en/twisatwins.html) that I mentioned in class on Friday. Your belief that Katrina will be good for the economy ignores the oppportunity costs of the reconstruction spending. The dollars that will be spent on reconstruction means that those same dollars will not be spent on what they would have been spent on if Katrina never wreaked its havoc. I wonder if the people on the Gulf Coast are hoping that another hurricane will come so that it can "stimulate" the economy--somehow, I think not.
Finally, please refrain from ad hominem attacks--your side note on President Bush was uncalled for.
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