Within the span of 2 weeks, US shores have been hit by 2 major hurricanes. Harvey which hit Texas and Southwest Louisiana in late August, and Irma making its way through the Florida coast. With the devastation left in their path, the question now is what is the financial toll on the US after 2 major disasters? The toll for Harvey’s destruction is estimated to be anywhere between $70 and $90 Billion, with only $35 billion protected by insurance, by RMS a disaster modeling firm. Analyst have predicted that Irma’s financial toll can reach up to $172 billion in the US alone. Countries in the Caribbean are expected to see cost of up to $65 Million from Irma alone.
The economy already took a dip after Harvey hit Texas, and cost are expected to rise as Irma works its way through Florida. Short-term economic growth may stagnate after Harvey and Irma, just this past Thursday, the federal government reported an additional 62,000 people filing claims for jobless insurance, most of whom were from Texas. This brings the total number of claims for the week to 298,000, levels that haven’t been seen in 2 years. However, in the wake of such disasters, the US economy is usually resilient. Reconstruction after a disaster usually leads to a boost in hiring and rebuilding is mainly subsidized by insurance payouts and federal aid. The US economy will take a hit in the 3rd quarter, but recovery is expected to come later in the year and into 2018. With Irma still in Florida, we hope that everyone stays safe and we send our hope and prayers to everyone affect by these 2 disasters. Now is the time to stand together and help out our fellow Americans as many face one of the most trying times of their lives, donate and help in anyways you can every little bit helps.