New Orleans Economics
| _M6_Doc | LASA 2 The Case For, or Against, New Orleans | | | 4/22/2013 |
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Economics of New Orleans
“In order to understand fully the economic impact of Hurricane Katrina on New Orleans, it is important to assess the impact of the economic forces driving the city.” (Michael L. Dolfman, Solidelle Fortier Wasser, and Bruce Bergman, 2005).
When looking at New Orleans and its current situation after Katrina one must remove themselves from the common emotions that are so easily felt. It is easy to say yes and have a sympathetic eye and push to restore what was once there.
We must be moved to against our natural heuristics used in decision making and not rely on emotional responses. We must take an analytical look at the …show more content…
So the question is does the economics of the New Orleans outweigh the cost of rebuilding it? All the constituents involved have paid and will pay a high cost to finish the rebuild and will pay an even greater cost if the devastation comes again.
The economics of New Orleans play a significant part in deciding to rebuild the city. Economic growth before Katrina was already slowing, “By 2000, a shift had taken place in the New Orleans employment base: the city lost 2.3 percent of its 1990 private-sector job base” (Michael L. Dolfman, Solidelle Fortier Wasser, and Bruce Bergman, 2005). So does it pay to rebuild a city that was showing decline in employment rate, household earnings and population before Katrina at the costs the devastation had created?
With this in mind one must now look at the costs of rebuilding. This is now estimated to be at 200 billion dollars. Early estimates were at 56 billion then 81 billion. The cost amount continues to rise. This is due to the economics of the city. With low paying unskilled jobs being at the fore front of the economy, which revolve around the tourism industry New Orleans is at an economic loss. The city needs to be up and running to get people back to work, and the tourists coming …show more content…
With a large part of the population gone and not coming back and many believing it will happen again, now is the time to change the layout of the city to make it better prepared. Government should use both fear aversion and social heuristics to rebuild the city in a way that justifies it being done. They should invest to rebuild to a level 5 hurricane based of frequency reports of storms. This would greatly reduce flooding to the entire Mississippi flood plain. They would have this opportunity now since many believe New Orleans will flood again and will not relocate to or move back to the
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Economics of New Orleans
“In order to understand fully the economic impact of Hurricane Katrina on New Orleans, it is important to assess the impact of the economic forces driving the city.” (Michael L. Dolfman, Solidelle Fortier Wasser, and Bruce Bergman, 2005).
When looking at New Orleans and its current situation after Katrina one must remove themselves from the common emotions that are so easily felt. It is easy to say yes and have a sympathetic eye and push to restore what was once there.
We must be moved to against our natural heuristics used in decision making and not rely on emotional responses. We must take an analytical look at the …show more content…
So the question is does the economics of the New Orleans outweigh the cost of rebuilding it? All the constituents involved have paid and will pay a high cost to finish the rebuild and will pay an even greater cost if the devastation comes again.
The economics of New Orleans play a significant part in deciding to rebuild the city. Economic growth before Katrina was already slowing, “By 2000, a shift had taken place in the New Orleans employment base: the city lost 2.3 percent of its 1990 private-sector job base” (Michael L. Dolfman, Solidelle Fortier Wasser, and Bruce Bergman, 2005). So does it pay to rebuild a city that was showing decline in employment rate, household earnings and population before Katrina at the costs the devastation had created?
With this in mind one must now look at the costs of rebuilding. This is now estimated to be at 200 billion dollars. Early estimates were at 56 billion then 81 billion. The cost amount continues to rise. This is due to the economics of the city. With low paying unskilled jobs being at the fore front of the economy, which revolve around the tourism industry New Orleans is at an economic loss. The city needs to be up and running to get people back to work, and the tourists coming …show more content…
With a large part of the population gone and not coming back and many believing it will happen again, now is the time to change the layout of the city to make it better prepared. Government should use both fear aversion and social heuristics to rebuild the city in a way that justifies it being done. They should invest to rebuild to a level 5 hurricane based of frequency reports of storms. This would greatly reduce flooding to the entire Mississippi flood plain. They would have this opportunity now since many believe New Orleans will flood again and will not relocate to or move back to the