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Post-Katrina Building Boom Will Lift Economy - RF Cafe Forums

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 Post subject: Post-Katrina Building Boom Will Lift Economy
Posted: Wed Sep 07, 2005 2:14 pm 
If you believe this story, the country will experience an economic boom as the result of having to rebuild after Katrina.

http://news.yahoo.com/s/csm/aimpact


 
  
 
 Post subject:
Posted: Wed Sep 07, 2005 3:50 pm 
 
Colonel
User avatar

Joined: Mon Jul 18, 2005 4:31 pm
Posts: 38
Location: Baltimore, MD
It's not possible to boost the broad economy by destruction. Money spent fixing buildings will not be spent on something else. The local economy may improve as rebuilding resources are focused in that area, but the overall American economy will only suffer.


 
   
 
 Post subject: Post-Katrina Building Boom Will Lift Economy
Posted: Fri Sep 09, 2005 1:41 am 
Will Iraqi economy improve because of American destruction and American rebuilding?

Will Prez. go for more wars to 'improve' more countries?

Will Americans order more katrina all around the country?


 
  
 
 Post subject: Economic "rebound" from Katrina destruction??? No
Posted: Tue Sep 13, 2005 1:31 pm 
Money spent on rebuilding a destroyed item is money taken away from other opportunities for that same money that the owner of the money previously had choices for, leading to the highest & best use of the wealth as determined by our free markets. For a MUCH better explanation of this, read the treatise by the famed Economist Dr. Walter Williams of George Mason University in the like provided:

http://www.townhall.com/columnists/walt ... 0907.shtml


 
  
 
 Post subject:
Posted: Tue Sep 13, 2005 11:26 pm 
 
Site Admin
User avatar

Joined: Sun Aug 03, 2003 2:02 pm
Posts: 451
Location: Erie, PA
Greetings Dave:

Dr. Williams is a national treasure of an economist. On top of that, he has an excellent sense of humor. If you ever get a chance to listen to him, do it. It will be the best dose of common sense you've had in a long time.

_________________
- Kirt Blattenberger :smt024
RF Cafe Progenitor & Webmaster


 
   
 
 Post subject: economy after Katrina
Posted: Thu Sep 15, 2005 6:31 pm 
Of course a disaster, or a broken window cannot increase wealth if the effect is measured to infinity of time and space.
However what is true is that to rebuild the economy some money will transfered from the government to contractors,
from forign credictors to the government (bonds),
from homeowners to homebuilders,
from insureers to homeowners
etc...

In short, maybe?, it will look like the economy will be doing better for a period of time in a localized area. It time it will cost money.

The whole economy and even our personal finances right now are running on forign credit anyway and our children will pay the tab. Katrina won;t make any difference.

What I have noticed though, since Katrina, is that the traffic on the h8ighway is a lot thinneer even though it is back to school. I am guessing that the economy took a hit just recently with gas prices... Just today they posted that 400,000 jobs have just been lost in the USA.
Not good....

Good luck to all.


 
  
 
 Post subject:
Posted: Wed Sep 21, 2005 8:37 pm 
 
Lieutenant

Joined: Wed Sep 21, 2005 4:33 pm
Posts: 4
Location: Aurora, CO
Don't be surprised to see the cost of building materials skyrocket because of the massive rebuilding effort. That coupled with high fuel prices may end up putting quite the hurt locker on the US economy.






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