Economic Effects
Before the storm hit, the region was already considered one of the poorest in the United States with one of the highest unemployment rates. Then, thousands of people in Mississippi and Louisiana became unemployed after the hurricane hit their cities. Hence, the economy only suffered more after the hurricane caused more people to lose their jobs. Altogether the government, under the Bush administration, needed around $105 billion for repairs and reconstruction, which coined the hurricane as the costliest natural disaster in United States history.
Examples of Economic Effects
Gasoline Industry
Almost half of the United States gasoline was produced in refineries along the Gulf’s shores, but due to the hurricane those industries were interrupted. Of the 20 refineries, two were completely shut down and several were out of commission for months. Oil importation, production, and refining were put on halt because the hurricane caused power outages that damaged oils pumps, damaged pipelines, and also caused around twenty offshore oil platforms to sink, go missing, or go adrift in the gulf coast. The result of the disturbance to the industry caused the oil price inflation, in the U.S. and even internationally in the UK. The inflation really hurt the US economically and there were many policies made to counteract the critical issues that came along with the rising gas prices. The US government combated the effect of the inflation by tapping into the nation’s emergency oil reserves and calling for citizens to conserve their gas.
Almost half of the United States gasoline was produced in refineries along the Gulf’s shores, but due to the hurricane those industries were interrupted. Of the 20 refineries, two were completely shut down and several were out of commission for months. Oil importation, production, and refining were put on halt because the hurricane caused power outages that damaged oils pumps, damaged pipelines, and also caused around twenty offshore oil platforms to sink, go missing, or go adrift in the gulf coast. The result of the disturbance to the industry caused the oil price inflation, in the U.S. and even internationally in the UK. The inflation really hurt the US economically and there were many policies made to counteract the critical issues that came along with the rising gas prices. The US government combated the effect of the inflation by tapping into the nation’s emergency oil reserves and calling for citizens to conserve their gas.
Gambling Industry
Around 14,000 people were employed at gulf coast casinos before the storm, but after the storm hit most casinos were damaged and those workers were laid off. When the hurricane hit, the casinos had been forced to close and evacuate, and due to the damage many weren't able to reopen for months. The gambling industry was a major income for cities, so the fact that they were closed was a major loss for the region. For example, yearly the casinos in Mississippi alone earned $2.7 billion, but some were paying $140,000 in tax revenue each day they were closed.
Around 14,000 people were employed at gulf coast casinos before the storm, but after the storm hit most casinos were damaged and those workers were laid off. When the hurricane hit, the casinos had been forced to close and evacuate, and due to the damage many weren't able to reopen for months. The gambling industry was a major income for cities, so the fact that they were closed was a major loss for the region. For example, yearly the casinos in Mississippi alone earned $2.7 billion, but some were paying $140,000 in tax revenue each day they were closed.