The Economic Fallout From Flood Disasters

It is no secret anymore that there is economic trouble brewing in our country today. Try as we might to ignore all of the warning signs that have been showing up over the past couple of years, our worst fears are actually coming true at a more rapid pace than we ever expected. The housing market seems to be falling apart and unemployment is on the rise because jobs are being cut in companies left and right. Even federal, state, and local governments positions are disappearing for some who have been working in their jobs for years.

It has been one of our most terrifying fears that gas prices would skyrocket and that has happened too. One of the most recent reasons that rising fuel cost is being blamed on is the weather. Tropical storms and hurricanes in the Gulf of Mexico have caused our oil refineries to be shut down some recently and we have definitely felt the blow from that. Even the short shutdowns of these oil rigs have caused havoc and panic. People scramble to the gas stations when there is the threat of severe weather because we have become accustomed to the fact that the cost of gas will go up and in some instances shortages of it have already taken place.

With the aftermath of Hurricane Ike came the dreaded four dollar a gallon gas for regular fuel. Premium and diesel fuel is even higher. The prices are likely to drop somewhat after the initial crisis has passed, they always do, but they never seem to get back down to where they were. It is feared that higher fuel prices are here to stay and we might as well get used to them whether we like it or not.

Although there will be some good financial growth at least temporarily for those in the water damage business and it is necessary to get folks back into their homes if they have one left. No one enjoys profiting because of the tragedies that have befallen others. The city of Galveston in Texas will be years in recovery. They have massive clean up and rebuilding to do. This will be good for construction in that area too provided people can afford to rebuild.

Insurance companies whether you love them or hate them have suffered some tremendous hits this year. It will be interesting to see how some of them fare in the weakened state of our economy on top of being hit with probably millions of claims as well. When you already have a faltering economic structure going on and then disaster upon disaster takes place, it does not bode well for many of us.