Tags: Superstorm Sandy | spending | economy | impact

Fortune: Post-Sandy Spending Unlikely to do Much for Economy

Wednesday, 31 Oct 2012 08:49 AM

By Dan Weil

Spending in the aftermath of super-storm Sandy will have little impact in boosting the economy, says Anne VanderMey of Fortune.

“One-off catastrophes tend to have a negligible long-term effect on the larger economy, positive or negative, even when there is a tragic human cost,” she writes.

Despite the damage wrought on some of the country’s biggest population centers, “Sandy … will hardly register on the national radar.”

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

To the extent Sandy does have an impact, much will be negative, VanderMey says, starting with up to $20 billion or more in losses.

Companies will surrender billions of dollars in revenue. Consider Starbucks, which shuttered its New York City stores during the storm. "You're not going to go out and buy twice as much coffee on Wednesday," Evan Gold of weather consulting firm Planalytics tells VanderMey.

Many retailers will take a hit, though some, such as Wal-Mart, should see a burst of sales, as people stock up with needed goods after the storm.

Fortunately, in the end, the economy is unlikely to suffer great pain, many experts say.

“Sandy will undoubtedly hit economic output in the short term,” Paul Ashworth, chief U.S. economist at Capital Economics, tells NBC News.

But, “some of that output will be made up before the end of the current quarter, and when we factor in the boost to [gross domestic product] growth from the cleanup, the overall economic impact is likely to be very modest.”

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

© 2015 Moneynews. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Larry Summers, Investors Doubt Yellen Deflation-Fighting Formula

Thursday, 29 Jan 2015 07:42 AM

Janet Yellen is betting she has the formula for fending off deflationary forces. Investors and some of her fellow econom . . .

Pending Home Sales Tumble Despite Lower Mortgage Rates

Thursday, 29 Jan 2015 10:23 AM

Fewer Americans signed contracts to buy homes in December, a sign that low mortgage rates have yet to coax more buyers i . . .

SocGen: Commodities Crash Favors Developed Markets in Short Term

Wednesday, 28 Jan 2015 06:14 AM

Falling commodity prices favors investments in developed countries over emerging markets during the first half of this y . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved