A Matter of Survival

A Matter of Survival

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The U.S has seen its fair share of economic hardships over this past year. Now they are forced to deal with Hurricane Sandy. As people are simply trying to stay alive, many economists are already predicting the effects it will have on an already struggling economy. It is still too early to tell but some are predicting at least 20 billion dollars in damages. Ten states in U.S have already declared a state of emergency and it appears it is only going to get worse. It’s hard to consider cost factor as the storm continues to rage on but it’s in the back of everyone’s mind.

Over the past few years Americans have watched their AAA credit rating diminish and their economy fall off the wagon. It is becoming apparent that the question may not be how much will it cost, but can U.S survive another economic beating. The American government, already trillions of dollars in debt, appears to be falling ever deeper into the hole. China owns over 800 billion dollars of American debt and the U.S pays 50 billion annually in interest alone. Point being, the U.S may not have the funds to escape this most recent economic adversity.

Not only will this cost the United States billions of dollars in damages, the economy will undoubtedly see a decline. Retailers will be hit hard as people will not have the means to shop. Although some industries (grocery) will most likely see an increase in sales and profit, most will feel negative effects. An economy that has been in long-term “slump” is in dire need of as much spending as possible. Overall, this disaster will see people spending less and therefore hurting an already suffering economy.

Only time will tell if the U.S can bounce back from yet another natural disaster. In 2005, Hurricane Katrina cost the United States over 100 billion and most would agree that they have never truly recovered. Could Hurricane Sandy be the “knockout punch” for the United States?