Not only did it go through the Gulf of Mexico , destroying hundreds of oil platforms; but also caused the most damage in the low income neighborhoods, like New Orleans. Before hurricane Katrina, about 40 % of citizens living in New Orleans were living in poverty. Making it the second highest city in America with concentrated poverty. Due to the fact that a large percentage of residents in New Orleans were poor, many housing properties were not structurally prepared for Hurricane Katrina. The lack of preparation in poor locations plus the failures of the levees , resulted in 80 % of New Orleans being …show more content…
Between the destruction of Americans main oil platform , the loss of jobs and tax revenue , and the damage over a million homes, greatly impacted the economy. States were also impacted by the loss of productivity of crops and oil, thus lacking resources and revenue. The government also received far less in tax revue than before due to tax relief for citizens. Although dozens of cities were affected by the storm , New Orleans was impacted the most. The storm caused 80 % of the city to be flooded. Because New Orleans had a high percentage of poverty , many families were unable to move back because of the high demand for houses that were sparse. Twenty percent of the population has yet to come back to New Orleans; and till this day , The city is still being