The hurricane season is always met with the worst of fears, especially when it comes on how extensive the damage the hurricanes would inflict in the United States infrastructure.  With the uncertainty of the country's economy in the years ahead, we wonder how the destructive nature of these natural disasters can cause to the American economy?

Losses and gains

The damage caused by hurricane Ike, for instance, was so massive that it is estimated that it costs about $27 billion worth of losses.  However, the impact on economic growth was said to be limited because the rebuilding process on the infrastructure of affected areas means that money would be spent thus keeping the economy afloat somehow. 

Hurricanes also cause a ripple effect on the spending habits of everyone who are either presumed to be affected or have been affected by these tropical storms. 

For instance, local restaurants would be beset with higher heating costs and higher delivery services due to increasing gas prices, which in turn was caused by damaged processing plants and pipelines. 

Customers, meanwhile, would have less money to spend on casual dining as they would rather put their money on reinvesting their damaged homes.

Towns and cities affected by hurricanes also close down, affecting local trade and businesses; meanwhile, real estate prices of these areas would like fall down depending on the extent of the damage, but the price of building materials would increase dramatically simply because of demand.

If you look at it, hurricanes are not really that destructive economically-wise, as this is viewed as opportunities to increase prices, while money continues to get circulated although in other means such as purchasing of building materials instead of going to the local cinema to watch a movie.