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Julia Robinson
Mrs. Harrell
English 4
November 7, 2014

The Effects of Natural Disasters on the US Economy

Every year the earth is affected by hundreds of natural disasters. A natural disaster is an
event in nature such as a flood or hurricane that causes damage or loss of life. Natural disasters
influence how we live no matter how grievous they are. The effects of natural disasters have
enormous impacts on different aspects of the US economy. Since natural disasters are nearly impossible to predict, the economy can change suddenly. Physical damages, the effects on businesses and the environmental effects cause the negative effects of natural disasters on the economy.
The physical damages resulting from a natural disaster require large sums of money. Hurricane Katrina was the recorded as the most economically costly natural disaster in the United
States using an estimated $200 billion on damages. Hurricanes are one of the most devastating
natural disasters because of the strong winds and water damage such as rain and water surges.
Strong winds cause trees to fall down and heavy objects to fly around. The amount of rain that
comes with a hurricane causes stores to flood and water damage to roads, bridges and, in the case
of New Orleans, the destruction of levies. These effects often lead to loss of life. The death toll
for Hurricane Katrina was estimated to be more than 1,200 people. The physical damages to
peoples homes caused the evacuation of thousands of Louisianas citizens (Dolfman and Bruce
3-17). During September, areas of Northern Colorado experienced enormous amounts of rain

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causing damage to small businesses, roads, oil fields, factories and laboratories (Lynn and Armbrister 1). These physical reparations not only cost the government but businesses as well.
For many businesses their biggest fear is being hit by a natural disaster. Natural disasters are unpredictable and cause untold property damage, transport failures, and profit loss. Every business
has something to lose when it comes to disasters. During the Great Flood of 2013, in Northern
Colorado, the flood damages were catastrophic for business. Anadarko, an oil company in the
area had to halt oil production during the flood, the company stated, Future work will be delayed until road repairs and conditions allow for equipment transport. Transport was badly affected because of the damages to roads, railroads and bridges. In Estes Park, the main road was
badly damaged leaving few other points of entry (Lynn and Armbrister 16). When transportation
is affected many businesses suffer. Transport damages complicate the delivery of supplies that
businesses need. Many others require outside help that cannot be accessed when modes of transportation are unavailable. Utilities can lose much of their revenue due to a natural disaster without a proper plan in place they are unable to restore commodities like electricity and water. In the
aftermath of Superstorm Sandy, Long Island Power Authority (LIPA) was asked to hand over its
utility operations to New Jersey utility PSEG after ninety percent of LIPA customers were left
without power for many weeks (Singh 34).
The environmental effects often impact the most people. The sudden changes in the environment due to a natural disaster impact everyone in the region. Each natural disaster has its own
characteristics. For example, a hurricane would have heavy winds and rain, while a volcano,
might have lava, gas emissions, or smoke. Agriculture is heavily influenced by these characteristics. The flooding in Northern Colorado in 2013 caused damage to cropland and to crops of corn
and sugar beets which were about to be harvested. However, they were in better condition than

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the previous years harvest during a drought, another type of natural disaster (Lynn 18). Many
companies in the United States depend on these harvests to keep their businesses running. This
domino effect causes complication across the country. Cropland is not the only piece effected
when there is a flood or a mudslide, it also affects the landscape of parks, mountains, forests, and
trees. For most other industries these environmental effects are the beginnings of the physical
property damage.
The physical damages, the effects on businesses and the environmental effects indicate
the extensive impact that they have on the economy. Natural disasters effect many aspects of the
economy and effect many people. Natural disasters are unpredictable and affect people all over
the world. Recognizing an impending hazard and knowing what to do to protect the community,
helps communities plan to prepare beforehand and with aid recovery after the event. Being prepared helps minimize the impact of the disaster on businesses and in the future the economy.

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Work Cited
Dolfman, Michael L. and Bruce Bergman. "The Effects Of Hurricane Katrina On The New Orleans Economy." Monthly Labor Review 130.6 (2007): 3-17. Education Full Text (H.W. Wilson).
Web. 20 Oct. 2014.

Lynn, Steve, and Molly Armbrister. "Flood Leaves Businesses Saturated, Cut-Off. (Cover Story)." Northern Colorado Business Report 18.27 (2013): 1-18. Business Source Premier. Web. 20
Oct. 2014.

Singh, Jasjeet. "How Utilities Can Prepare For Disruptive Events." POWERGRID International
19.5 (2014): 34-37. Business Source Premier. Web. 20 Oct. 2014.