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How do hurricanes like Dorian impact the economy?
(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)
Hurricane Dorian was the most powerful storm on record to hit the Bahamas and is tied for the highest winds of an Atlantic hurricane ever recorded at landfall. The Category 5 major hurricane wreaked havoc on the Bahamas with gusts of up to 220 mph and storm surges topping 20 feet. On Grand Bahama, the storm raged for what must have been an unimaginably hellish 24 hours straight. At least 70,000 people have been left homeless. Weeks after the storm, 1,300 people are still missing. Currently, officials can confirm that the storm claimed 52 lives, but tragically, the total death count likely will be much higher.
In the wake of devastation from Hurricane Dorian, Floridians and the rest of the Eastern Seaboard have been left with a terrifying thought: “That could have been us.” And it’s true. Early forecasts had put Florida right in the crosshairs of Dorian’s destructive path. If that were to have happened, what would’ve been the cost to us? It seems callous to put a price tag on a tragedy like Dorian, but determining the cost of these hurricanes can inform policy and justify infrastructure spending. Calculating the cumulative cost of natural disasters can help us decide how much we should invest in hurricane preparedness, how much we should set aside for our rainy (and windy) day fund, and how much aid we should provide our neighbor nations.