Economist Foresees Modest Impact from Storms

Many economists believed that Katrina would dramatically point off economic activity in the second half of this year. One important economist that believed in this statement is Ben Bernanke, the presidents Economic Adviser. During the speech of Institute of International Finance that was given this past Sunday, Ben Bernanke said, " So far, the effects appear to be relatively modest on growth." Bernanke and other private economists expect jobs to take a hit in the short term. Job losses for the month of September could be very heavy and the unemployment rate, now at a four-year low of 4.9 percent, would rise. The congressional Budget Office estimated that job losses from Katrina through the rest of the year would total around 400,000. There are many different estimations on what is going to happen to the economy in the next few months and years. Due to the dramatic outcomes of these natural disasters, we will definitely struggle to find a way to keep jobs available. Do you think the economy will suffer this major unemployment rate? How do you think we can help make this not come a reality, is there anything we can do?

-Jessica Hutchison