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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (40083)	9/2/2005 10:00:53 AM
From: Moominoid	Respond to of 306849

Reconstruction boosts GDP in a lot of minor disaster cases because wealth is dissaved to reconstruct. If the disaster is sufficiently big though the initial disruption would outweigh even that. But in neither case is long term wealth increased. Some places economies may be jump started by the inflow of government aid and ripping out of obsolete infrastructure, kind of pushing the reset button, and maybe in some cases breaking out of a low equilibrium in the hit area might outweigh the drag created elsewhere by diverting the funds.... here I would rather doubt that is going to be the net effect.