Question

On net, does a natural disaster create jobs?

Multiple Choice

• No, because people are too scared to spend money.

• Yes, because people have to pay to repair the damage, creating construction jobs.

• Yes, because the affected country will import more.

• No, because money spent repairing damage can't be spent on other goods.

Answer 1

1. When something is basically destroyed (through natural disasters as mentioned in the question) in an economy, it doesn't mean that the same thing is to be built again. So here in this phase economic growth takes place through upgraded technology where things are going to work effectively and efficiently.

2. It provides a short term gain to the economy and offers a quick boost according to major economists and analysts.

3. Studies have found that disasters which occurred in Alaska and California in the form of earthquakes inclined their rate of economic growth where analysts and economists concluded a link between disasters and their economic growth rate. In fact they found that the areas with storms and hurricanes have higher growth rate of the economy.

4. Mentioning the reasons above doesn't mean to encourage the effects of natural disasters which might be harmful to the people, but in fact the points only here is to mention about the economic growth rates(in terms of jobs) neglecting the effects of global warming which is not a natural disaster but tend to be earthly disaster.

5. So, Example answering this questions would be Hurricane Andrew which struck the entire area of south-east Florida in the year 1992, where the damage is claimed to be $40 billion as of today improved the rate of employment through creation of new construction jobs. This data provided is according to Gus Faucher, director of macroeconomics at Moody's Economy.com, a consulting company.

So the second option is the right one with the practical examples provided above.