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

Wednesday, 31 Oct 2012 08:49 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
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.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
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:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Senate Bill Targets Companies That Move Overseas

Wednesday, 23 Jul 2014 13:20 PM

The Senate voted Wednesday to advance an election-year bill limiting tax breaks for U.S. companies that move operations  . . .

IMF Says Fed May Have Scope to Keep Rates Low Past Mid-2015

Wednesday, 23 Jul 2014 13:03 PM

The Federal Reserve may have scope to keep interest rates at zero for longer than investors anticipate as inflation stay . . .

MarketWatch's Weidner: Anger at Banks May Be 2016 Election Issue

Tuesday, 22 Jul 2014 13:19 PM

Despite the multi-billion-dollar settlements that major banks have reached with the federal government for their behavio . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

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