Current Event 3
Article: Texas and Florida hurt by the economic body blow from hurricanes Harvey and Irma
written by Scott Cohn on September 15, 2017
Weather is a huge affecting factor onto the economy which can cause much harm into how the
economy could turn out. This article was written about the two recent hurricanes that not only
affected the lives of thousands of people, but also placed a dent into the nation’s economy.
According to the article and the Commerce Department’s Bureau of Economic Analysis, Texas
“accounted for nearly 8 percent of the total U.S. economic output with a gross domestic
product of $1.5 trillion dollars in the last year,” while Florida’s economy is mostly made up of
tourism, ports, business services and health care that bring in huge profit and economic growth.
It’s pretty straightforward that when one is hit with a storm like none other, a stress is being
put onto an economy, in which the economy being said is still growing with limited resources
and not enough labor. Not only does it affect the state’s economy, businesses within the states
are hit badly hurting franchises and small businesses most of all with property damage and etc.
Microeconomics is concerned with the effects of individuals and firms that make decisions
regarding the allocation of scarce resources. A huge determining factors that can effect the
outcome of is sadly weather. Weather is one of the various factors that can affect the supply
side of the market causing the supply curve to shift left or right depending on it’s impact
towards the market. Favorable weather can increase crop yields causing a rightward shift of the
supply curve but in the same, unfavorable can cause the supply curve to shift leftward when
disasters such as tornados, hurricanes, or harsh winters could destroy and shrink crops.
Texas and Florida hurt by the economic
body blow from hurricanes Harvey and Irma
• Hurricanes Harvey and Irma could slow U.S. GDP 1% this year, dropping it to 2.8%, DS
Economics predicts.
• Texas, ranked No. 4 in 2017 America‘s Top States for Business, accounts for nearly 8% of U.S.
economic output.
• Florida’s economy is about half the size of Texas’ — but its range of industries, including tourism,
ports, business services and health care, magnifies the impact from Irma.
• Florida enjoyed the fifth best year-over-year job growth in the nation before Hurricane Irma hit the
state.
• Unemployment in both states has been tracking near or below the national average, leading to
worker shortages even before the storms.
