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Extreme Weather’s Massive Economic Impact
When talking about the extensive economic impact that last year’s natural disasters had on the world, it may seem odd to quote Jay-Z in saying, “Men lie, women lie, numbers don’t.” But, he is right. Last year, the world witnessed an onslaught of devastating and seemingly endless series of natural disasters, which, according to the National Oceanic and Atmospheric Administration (NOAA), made 2017 the most expensive year for natural disasters in the U.S.
With a total of $306 billion in damages, including 16 events that cost more than $1 billion each, the majority of the damage was at the hands (or literally eyes) of hurricanes, costing a total of $265 billion. Hurricane Harvey and the detrimental flooding that tragically affected Houston reportedly caused $125 billion in damages. According to Adam Smith, an economist for the NOAA, Hurricane Harvey, Irma and Maria join Hurricane Katrina (2005) and Hurricane Sandy (2012) as the most costly in the agency’s disaster records.
Compounded by mudslides, fires, earthquakes and more, insurers are set to pay out a record $135 billion, and sadly, they expect more catastrophes ahead. UC Berkeley’s public policy professor Solomon Hsiang shared, “[the cost to society] shows up over the next decade … The idea that it causes any kind of economic stimulus is a myth; there’s just no evidence of that.”
For comments, questions or concerns, please contact Daniella Soloway
