No, Hurricanes Aren’t Good for the Economy

The Week Ahead

September 18, 2017

Those with common sense and no economics training will be left scratching their heads by the title of this commentary. Who would even think that two massive storms, Harvey and Irma, will be an economic win? Some economic analysts, that’s who, and it’s because of the less than perfect way we measure economic well-being.

Real GDP growth, which captures all the headlines, measures changes in the after-in ation value of goods and services produced in a given period of time. US third- quarter results will take a major hit from all the lost hours of work and missing output in the affected states.

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