Research Guides: Louisiana Hurricanes: Impact on Economy (original) (raw)

Hurricane Katrina is tied as the costliest hurricane to have ever hit the United States, with 125billionindamages.Thisnumberdoesnotaccountfortheadditionalcostsassociatedwiththeeconomicfalloutofthestorm,whichincludesthelossofhomesandjobs,aswellastheinterruptionoftheexportindustry,thetourismindustry,oilproductionandsupply,andtaxcollection.InNewOrleansalone,anestimated95,000individualslosttheirjobsinthe10monthsfollowingthehurricane,accountingfor125 billion in damages. This number does not account for the additional costs associated with the economic fallout of the storm, which includes the loss of homes and jobs, as well as the interruption of the export industry, the tourism industry, oil production and supply, and tax collection. In New Orleans alone, an estimated 95,000 individuals lost their jobs in the 10 months following the hurricane, accounting for 125billionindamages.Thisnumberdoesnotaccountfortheadditionalcostsassociatedwiththeeconomicfalloutofthestorm,whichincludesthelossofhomesandjobs,aswellastheinterruptionoftheexportindustry,thetourismindustry,oilproductionandsupply,andtaxcollection.InNewOrleansalone,anestimated95,000individualslosttheirjobsinthe10monthsfollowingthehurricane,accountingfor2.9 billion in lost wages. The storm’s economic effects were also felt by the country at large. Katrina impacted up to 19% of the total U.S. oil production, as 24% of the country's natural gas supply is housed in or around areas impacted by the storm. 20 offshore rigs sustained significant damage by either sinking or running adrift. As a result, Louisiana refineries began to halt production, and gas prices across the countries rapidly increased in the weeks following Katrina. This was the first time in the country’s history that the national average gas price exceeded $3.

In New Orleans, urban renewal projects were implemented in the years following the storm in an attempt to revitalize the shrinking city and jumpstart the economy, as much of the loss occurred in the housing sector. Consequently, the lack of affordable development, the renovation of rental properties, and the demolition of several public housing projects meant that many displaced residents remained without homes. Efforts to gentrify neighborhoods in order to promote a new post-Katrina economy left the city’s lower-income residents without the means to return.