Don't be a simpleton and stop your analysis after the first sentence of the second paragraph of this excerpt:
Frederick R. Treyz, the chief economist of Regional Economic Models Inc., did an analysis of the possible impact of the storm.
Assuming that direct damages totaled $7 billion, Dr. Treyz projected that the recovery would generate roughly 42,000 jobs — including construction workers, debris removers and the jobs that would be generated by the money they earned and spent elsewhere. But he calculated that one day’s business disruption across the affected region — a rough estimate that allows for some businesses that were not disrupted at all, and others that were disrupted for several days — would lead to losses that could cost roughly 62,000 jobs.
Time to play heartless bastard*, although I'd rather not:
Hurricane Irene will most likely prove to be one of the 10 costliest catastrophes in the nation’s history, and analysts said that much of the damage might not be covered by insurance because it was caused not by winds but by flooding, which is excluded from many standard policies.
Industry estimates put the cost of the storm at $7 billion to $10 billion, largely because the hurricane pummeled an unusually wide area of the East Coast. Beyond deadly flooding that caused havoc in upstate New York and Vermont, the hurricane flooded cotton and tobacco crops in North Carolina, temporarily halted shellfish harvesting in Chesapeake Bay, sapped power and kept commuters from their jobs in the New York metropolitan area and pushed tourists off Atlantic beaches in the peak of summer. ...
While insurers have typically covered about half of the total losses in past storms, they might end up covering less than 40 percent of the costs associated with Hurricane Irene...
The governors of New York, New Jersey and Connecticut sought expedited disaster declarations from the federal government on Tuesday, which would pave the way for more federal aid.
Of course, providing aid to those who live in harms way gives them incentives to continue living there. In other words, we have a fairly large moral hazard problem. A more efficient policy is to allow the insurance markets to operate freely and end the subsidies, including disaster aid (including the rebuilding NC 12). There, I said it.
Also, cutting the federal budget in other areas so that we can afford disaster aid makes little economic sense. In addition to Krugman's analysis, with that sort of balanced budget decision-making we are subsidizing relatively bad behavior and taxing relatively good behavior.
*About 20 years ago I was home for the Christmas holiday and spouting off some standard economics. My little sister walked up and banged on my chest and put her ear to it to listen to see if the thing inside there was still beating.
School's back, and so are our readers! Welcome back! Now feel free to remind us how great we are (our egos could use a little stroking after a long complement-free summer)
But
in fact, mounting evidence suggests that beer in particular, and the beer
industry that surrounds it, may be as good for growth as excess sobriety. In
some of the world's toughest investment climates, beer companies today are
building factories, creating jobs, and providing vital public services, all in
the pursuit of new customers for a pint. It's the brewery as economic stimulus:
a formula even a frat boy could love.
It's been a while since I let my snark out......so let's see if I've still got it. From CNN.com:
If you've ever thought, "One day, I'm going to put in a solar energy system," today might be the day.
And if the extent of your knowledge of solar energy systems is burning ants on a hot summer day using only a magnifying glass...you might be a redneck.
Economic issues across the nation are contributing to the early demise of solar incentives such as tax breaks, grants and rebates.
And economic issues in other countries. like Somalia, are leading to the demise of...people.
"We've been thinking about this for several years," said California homeowner Jim Adams.
"The cost wasn't really coming down, so we went to the bank, asked for a loan and decided to get it done."
Ummm, huh?
Get'r done!
So Adams had a 16-panel system installed on his roof in La Crescenta, California, about 15 miles north of Los Angeles.
He received a 30% tax credit from the federal government and a 10% cash rebate from the state.
Wow, that would be like saving $10,000 on a $26,000 investment.
It cost him $16,000 -- a savings of $10,000.
See, told you so.
This year, a federal 30% cash rebate through the U.S. Treasury Department comes to an end. And the 30% federal tax credit program will conclude at the end of 2016.
That's ok, because we don;t need to worry about anything after 2012:
These incentives, created as part of the federal stimulus package a few years ago, were designed to create a vibrant solar energy market. Along with the federal program, 29 states offered incentives. Many of those state programs are also becoming victims of budget cuts.
There are many days when I could use a vibrantly stimulated package.
Did I say that out loud?
In Florida, Michael Hoffman, a taxation professor, hoped that between the federal tax credit and the state rebate, he'd be able to better afford a solar energy system.
But a computer error in the state's application process actually cost him $20,000 more than he had planned on paying.
Hoffman blamed "poor record-keeping" on the state's end.
"They took more applications than they had money for," he said.
"If we'd known that our cost was going to be $33,000 instead of $13,000, that would have been a fairly hard one to sell to ourselves just for the ecological, environmental warm and fuzzies."
Oddly on ratemyprofessors.com there is a Florida Atlantic University professor of accounting (not taxation so I'm not sure this is the same person) named Michael Hoffman rated thusly..."most boring, monotone-voiced, self-absorbed, un-concerned professor! RUN while you can!!" And, yes, I can speak because I was redently rated thusly: "I was dreading this class, but Prof. Haab made it enjoyable. He is light-hearted and uses a lot of good examples to help everyone understand the material. He is also very helpful. I recommend going to class if you want a good grade."
Sales of rooftop solar panel installations jumped 67% last year, compared with 2009, according to the Solar Energies Industry Association.
I can't decide which way to go with my snark here:
Option 1: Yep, installations went from 3 to 5.
Option 2: I wonder if that had anything to do with a 40% subsidy?
Option 3: Oddly enough, sales of basement solar panel installations remained flat.
“Bloomberg, he did O.K., but he made people crazy and spend a lot of money,” said Franklin Rodriguez, a building superintendent on 44th Drive in Long Island City, Queens, just outside the Zone A low-lying evacuation area. He said he had spent $200 on supplies on Friday and $67 on a fill-up.
“Water, batteries, tuna fish, other food in a can,” he said. “For what? Believe me, people spent a lot of money on this. The tuna fish and the other food, O.K., we’re going to eat it. I don’t need all this water and batteries, though.”
Just wondering if Tim is having a Floyd flashback:
East Carolina University officials canceled classes today on the Greenville campus, citing downed trees and water leaks in buildings. College officials will decide today whether to cancel classes Tuesday.
"N.C. 12 is breached north of Rodanthe. State crews have bridges and roads to repair, utility crews have electricity to restore, and residents have homes and businesses to mend. Working Sunday were 1,800 N.C. DOT employees, 400 National Guard soldiers and 300 state troopers."
Irene may cost insurers as much as $3 billion to cover U.S. damage, with overall economic losses of $7 billion, according to Kinetic Analysis Corp., which predicts disaster impact. The U.S. suffered $35 billion in losses in nine separate events so far in 2011, according to the National Oceanic and Atmospheric Administration, tying a record for disasters causing more than $1 billion damage in a single year.
