Will Hurricane Katrina increase GDP?
Will Hurricane Katrina increase GDP? Thursday February 15, 2007A reader asks: “I heard some estimates on tv that the cost of rebuilding New Orleans will be over $200 billion dollars and that the harm of the economy (gas price, shock, loss of production in affected areas etc.) will be about $50 billion dollars. My question is that assuming everything else remains the same and those estimates are accurate, will the GDP actually rise by about $150 billion? And if so, does this mean that Katrina was a good thing in terms of economics?” See my response here: Will Hurricane Katrina increase GDP? Related articles: Are Wars Good for the Economy?, What are Opportunity Costs?,
