New Orleans businesses feel Mardi Gras spirit
With the effects of HURRICANE KATRINA many businesses in the South have been economically deprived. With the loss of natural resources and people who are able to purchase things, the economy suffered. With trying to start over, businesses are trying to become more efficient. With specialization, the economy will begin to reshape and get back to normal. Mardi Gras is one thing that can help a city like New Orleans achieve their goal.
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3 comments:
Although I agree that the presence of Mardi Gras can and probably will have a large impact on the economy in New Orleans, I think that the economy will continue to suffer because of a lack of faith. Faith that is, in the ability to insure their assets. Several thousand lawsuits are beginning because local insurance companies inadequately represented the people living there. If people are afraid that their property cannot be justly insured, will the population ever return to New Orleans?
Link to these comments:
http://www.nytimes.com/aponline/us/AP-Katrina-Insurance.html?_r=1&oref=slogin
My brother lives in New Orleans so I care a lot about the rebuilding of the city. Tourism is what New Orleans really needs right now to gain profit that will allow them to repair damage and re-open businesses. I hope that a lot of people do attend Mardi Gras this year, stay in the local hotels, eat in the restaurants, and shop in the local stores to help to continue to bring New Orleans back to life.
I think this article somewhat represents how a market strives for equillibrium. After the hurricanes, the economy in New Orleans was suffering. There were, and are, shortages in the workforce, as well as shortages in a pile of other areas. Natural disasters can shift the supply curve to the left as producers deal with shortage. But as we have learned, if left alone, economies will stive for equillibrium. I think the expected increase in tourism and the activity generated by the holiday represents how the market starts to repair itself. So, I think the expectation of Mardi Gras for this year is a good sign, and hopefully more improvement will follow!
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