Infrastructure

In 2012 Hurricane Sandy was listed among the top 10 natural disasters with the highest fatalities. If we consider the cumulative fatalities of the U.S. and the Caribbeans, it numbered at 220 people.

So are we preparing for these kind of disasters in the future?

Well, it seems New York City is falling short in this prospect. A recent OECD report showed that NYC is behind in protecting its coastlines compared to cities such as London, Tokyo, and Shanghai. FEMA has also reported that “on average, a dollar spent by FEMA on hazard mitigation (actions to reduce disaster losses) provide the nation in about $4 in future benefits.” NYC is a particular danger zone, the age of its main gas pipelines averages at 56 years; water pipelines at 69 years; and sewage systems at 84 years. Yet these only touch upon the extent of the city’s aging infrastructure. Many bridges, roads, and buildings are all in dire need of repair as well-the average CUNY building is 53 years old and bridges, 63 years old. The minimum cost to repair or replace all existing infrastructure in NYC amounts to a staggering $47.3 billion.

Unwelcome Waste

Hurricane Sandy has left us with another dilemma- sewage overflow. Untreated sewage is dangerous not only for humans and animals, as it’s filled with harmful microbes, but also for the environment. Sewage treatment plants are located in low lying grounds and are vulnerable to overflow, leaking untreated sewage into local waterways. According to Climate Central, it will cost approximately $2 billion to repair the damage Sandy has inflicted on sewage treatment plants.

As houses overflowed during the storm surge, they became ideal environments for mold growth. The problem with mold is that it does not go away by itself. A year after the hurricane, there were still houses infected. According to a health flyer, “Respiratory concerns and mold clean up after hurricane Sandy”, exposure to mold can lead to all sorts of allergic reactions. So not only is it a potential danger to people’s health, but its an unpleasant reminder of how slow the recovery was after the storm.

Nobody was expecting it to be that devastating.

Economic Impact

The immediate effect of hurricanes is seen as physical destruction and emotional devastation. Hurricane Sandy was the second costliest natural disaster for the United States, causing $65 billion in damage. However, the economic impact has manifested itself more severely in the long run in local communities than the national economy.

Sandy caused the NYSE to stop trades for 2 days as New Yorkers braced for the hurricane. This caused an unusual interruption of potential trading, considering that the NYSE had never had a 2-day weather closure since 1888. Private insurance companies suffered $10 – $20 billion in losses, and the National Flood Insurance program lost an additional $20 billion.

Immediately after the hurricane, businesses needed to recover and rebuild before resuming regular economic activity-some taking days, and others months to rebuild. Generally after natural disasters, the economy slows down as people stop spending. Local business activity slows the most, with both consumers and merchants rebuilding. Certain business increases with hurricanes, such as construction and hardware supply because these materials are needed for repairs. Home Depot reported a 7.1% increase in sales 3 months after the storm.

In New York, severely devastated areas suffered because property tax rolls were not collected due to the damage. Local governments and schools suffered as funding was cut since these taxes produced only fractional revenues. In the larger scale, the slow growth of the 2012 economy was not attributed to Sandy. Economists at the Federal Reserve Bank of New York said that any effects from Sandy did not cause significant deviation from normal fourth quarter predictions.

Click here to read more about the technical details of Hurricane Sandy.