September 8, 2005


Hurricane to Cost U.S. 400,000 Jobs, Study Says: The GDP will take a hit this year, but rebuilding may lift the economy in 2006, the report finds. (Jesus Sanchez, September 8, 2005, LA Times)

An estimated 400,000 Americans will lose their jobs and the nation's economy will grow more slowly during the second half of this year as a result of the economic fallout from Hurricane Katrina, according to a federal report released Wednesday.

But the long-term economic effect of the deadly storm that devastated New Orleans and the coast of Louisiana, Mississippi and Alabama will be relatively muted, and rebuilding activity should give the economy a boost, the Congressional Budget Office said.

"While Katrina has devastated ordinary business, it will also likely lead to a boom in clearing and reconstruction activity," the report said. [...]

Despite the dire projections, the report said the U.S. economy was strong and large enough to absorb Katrina's hit without much pain in the long run. The rebuilding of destroyed and damaged homes, businesses, and commercial and government facilities will pump billions into the economy and create jobs, the study said.

"Economic growth and employment are likely to rebound during the first half of 2006 as rebuilding accelerates," the report said.

Just in time for the midterm elections....

Posted by Orrin Judd at September 8, 2005 10:47 AM

They're just hamburger flipper jobs anyway.

Posted by: erp [TypeKey Profile Page] at September 8, 2005 11:45 AM

Who cares about the hamburger flippers! Right, erp?

Editor's Note: please adopt a pseudonym of some kind so folks can address you when they address your points.

Posted by: at September 8, 2005 11:55 AM

What about all the new jobs that will be created shortly as they rebuild?

Posted by: obc at September 8, 2005 3:12 PM

No name - just being sarcastic. It's not usually necessary to use (s/on - s/off) on this blog.

No sarcasm intended: Any job is better than the dole for able bodied people.

Posted by: erp [TypeKey Profile Page] at September 8, 2005 3:30 PM

I wonder if Nagin will be supporting Blanco this time? Check out the Mudville Gazette (a former LA resident) for some explanation of their feud.

Posted by: jim hamlen at September 8, 2005 7:52 PM