In the last few weeks, the United States and a number of Caribbean countries have suffered hurricanes that have caused untold devastation. The state of Texas bore the brunt of the disaster. Hurricane Harvey visited this state and left a trail of utter destruction (Quealy, 2017). Thousands were forced to flee their homes. Many homes were destroyed and the property damage is estimated to be in the billions. The economic cost of Hurricane Harvey and the devastation that it has caused has been the subject of discussion. Kevin Quealy penned an article that appeared in the New York Times. In the article, Quealy provides estimates of the economic cost of the hurricane. If his estimates are anything to go by, Texas and the larger US nation should brace for a long and difficult path to recovery.
Summary
As already noted above, Quealy’s article focuses on the economic devastation that Hurricane Harvey caused. He begins his article with a description of the physical damage that Texas has suffered (Quealy, 2017). He mentions that such cities as Houston are grappling with floodwaters which threaten to cause even greater damage. He then proceeds to provide various estimates of the damage that the hurricane caused. He predicts that when the hurricane eventually dies, Texas should expect a repair bill that ranges from $70 to $108 billion (Quealy, 2017). Quealy suggests that this estimate is rather conservative as there are those who believe that Texas and such other states that Hurricane Harvey visited as Louisiana should ready themselves for as much as $190 billion in damage (Quealy, 2017). Harvey proceeds to caution that these estimates may be revised upwards as the exact damage that the hurricane caused becomes clear. Quealy also identifies a number of organizations and individuals who have provided estimates of the damage. While the figures that these parties provide are different, they all point to the difficult times that lie ahead for the authorities in Texas and Louisiana. Quealy also introduces the role that insurance coverage will play in recovery efforts. He states that insurance companies usually do not cover damage that results from flooding (Quealy, 2017). The implication of this is that the burden of restoring Texas and Louisiana lies squarely on the shoulders of the authorities in these states. The larger American government may need to intervene since the crises in Texas and Louisiana will undoubtedly overwhelm these states.
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Changes needed
While the economic cost of Hurricane Harvey is the main focus of Quealy’s article, the article underscores the need for change in how the US prepares for emergencies. At $190 billion, the economic cost of Hurricane Harvey will undoubtedly stretch the finances of Texas and Louisiana. The US has traditionally failed to set aside adequate funds to respond to such disasters as hurricanes. For example, in 2005, Hurricane Katrina killed hundreds and caused billions in property damage. Many believe that the damage would have been lower had the state and federal governments adequately prepared for the hurricane and the resulting devastation. The authorities in Louisiana and Texas appear to have committed the same blunder that those in New Orleans made. Earlier in 2017, the Texas legislature debated a budget which appeared to place little focus on disaster prevention and recovery. This budget focused on such programs as child welfare and education (Svitek, 2017). While these programs are essential, the state authorities failed to set aside adequate funds for disaster recovery. Before Hurricane Harvey struck, Texas had been grappling with an economic downturn that had been blamed on dwindling oil revenues (Svitek, 2017). The economic problems that the state faced forced it to implement a hiring freeze in the hope of committing more resources to vital programs. The US federal government also shares blame for failing to adequately prepare for such disasters as Hurricane Harvey. President Trump has been the subject of criticism for failing to focus his budget agenda on disaster prevention and recovery (Rein, 2017). It is evident that the huge economic cost that Hurricane Harvey caused could have been mitigated had more funds been made available for disaster recovery. To insulate communities against such damage, urgent budgetary reforms are needed.
Balanced budget constitutional amendment
To address some of the economic issues that the US grapples with, it has been recommended that a constitutional amendment should be implemented. This amendment will require states and the federal government to maintain balanced amendments. Many believe that this amendment would set the stage for disaster. Heightening recessions is one of the possible negative impacts that the US would suffer should it implement the constitutional amendment (Kogan, 2017). Another adverse effect that the amendment would have is posing a threat to social security. The amendment would also hamper efforts to provide military personnel and civil servants with retirement benefits (Kogan, 2017). The amendment would also deny the country some of the benefits that result from a budget deficit. For example, deficits facilitate recovery and shield the economy against shocks when the nation is at war. A constitutional crisis could also arise if the amendment is implemented. Government inefficiencies and a constitution that could lose its relevance are other cons of the constitutional amendment (Dews, 2014). The main benefit of the amendment is that it would require governments to ensure that they have adequate revenues to fully finance all their operations. Given that the cons of the amendment outweigh the benefits, the implementation of the constitutional amendment would be ill-advised and would pose a threat to the economy.
Comparable historical event
The US is no stranger to such disasters as Hurricane Harvey. The country has witnessed other disasters that have caused damage that can be compared to the devastation resulting from Hurricane Harvey. Hurricane Katrina is among these disasters. This disaster caused damage that was estimated at over $160 billion. Apart from economic damage, the hurricane also resulted in the deaths of over 1,800 Americans (“Katrina Impacts”, n.d). The two disasters can also be compared on the basis of poor preparation on the part of the government. Hurricane Katrina uprooted people from their homes and disrupted work. It was nearly impossible for people to attend work because they had lost their homes and the premises where they worked. The hurricane also damaged homes and caused pain and immense suffering in families. Many people lost loved ones. This disaster also destroyed recreation facilities. For instance, the New Orleans City Park which served as a recreation center suffered extensive damage (Bynum, 2007).
Impact
I am grateful that I am not among those who have suffered directly following Hurricane Harvey. However, I still feel that I have suffered in some ways. I find that my work has been affected. The organization that I work for has instructed some of its employees to assist victims of the hurricane. This has meant that we have had to carry heavier loads. I think that this is the necessary cost that we must pay as we seek to restore Texas and Louisiana. My family has also suffered. We have a number of relatives in our extended family who stay in Texas. While none of them has died or lost property, most of them are shaken. They are still trying to come to terms with the devastation that their neighbors have suffered. My recreation has also suffered. As I have already mentioned, we are now required to work harder and for longer. This has meant that I am no longer able to engage in recreation. I believe that this is only a temporary situation.
In conclusion, given that the US has historically witnessed a wide range of natural disasters, one would expect that the nation is adequately prepared to respond to these disasters. However, as the huge economic cost of Hurricane Harvey reveals, it appears that the nation does not learn from its past. As was the case with Hurricane Katrina, this disaster caused tremendous damage. The country needs to have a discussion regarding how to brace for disasters. There is a particular need for the country to allocate enough funds for disaster preparation and response.
References
Bynum, M. (2007). After Hurricane Katrina, Signs of Rebirth at New Orleans City Park.
Retrieved 25 th September 2017 from http://www.athleticbusiness.com/outdoor/after-hurricane-katrina-signs-of-rebirth-at-new-orleans-city-park.html
Dews, F. (2014). 5 Reasons why a Federal Balanced Budget Amendment is a Bad Idea.
Retrieved 25 th September 2017 from https://www.brookings.edu/blog/brookings-now/2014/07/28/5-reasons-why-a-federal-balanced-budget-amendment-is-a-bad-idea/
Katrina Impacts. (n.d). Retrieved 25 th September 2017 from
http://www.hurricanescience.org/history/studies/katrinacase/impacts/
Kogan, R. (2017). Constitutional Balanced Budget Amendment Poses Serious Risks.
Retrieved 25 th September 2017 from https://www.cbpp.org/research/constitutional-balanced-budget-amendment-poses-serious-risks
Rein, L. (2017). Trump would Slash Disaster Funding to the very Agencies He’s Praising for
Harvey Response. Retrieved 25 th September 2017 from
https://www.washingtonpost.com/politics/as-agencies-respond-to-storm-some-face-cuts-under-trump-budget-proposal/2017/08/29/0fbbd6ca-8cc8-11e7-84c0-02cc069f2c37_story.html?utm_term=.c51b07dcd733
Svitek, P. (2017). In State of State, Abbott Imposes Hiring Freeze, Declares 4 Issues
“Emergencies”. Retrieved 25 th September 2017 from
https://www.texastribune.org/2017/01/31/state-state-abbott-lays-out-predictable-agenda/
Quealy, K. (2017). The Cost of Hurricane Harvey: Only One Recent Storm comes close.
Retrieved 25 th September 2017 from https://www.nytimes.com/interactive/2017/09/01/upshot/cost-of-hurricane-harvey-only-one-storm-comes-close.html?mcubz=0
