The deadly widespread flooding that have
left a trail of death and destruction throughout the South and the Midwest have
also disrupted dozens of local economies just as the unsteady recovery seemed
to be finding a foothold But a new phase is slowly beginning in some hard-hit
areas: reconstruction, which past disasters show is typically accompanied by a
burst of new, and different, economic activity. There is no silver lining to a
funnel cloud, as anyone in who survived the tornadoes can Football
Shirts Wholesale attest, but reconstruction can help rebuild local
economies as well as neighborhoods. More than a tenth of the businesses in
Tuscaloosa, Ala., were badly damaged or destroyed in April when a tornado swept
across a 5.9-mile stretch of the city, and nearly 6,000 Alabamians have filed
storm-related claims for unemployment benefits. An even deadlier tornado laid
waste to roughly a quarter of the businesses in Joplin, Mo., on May 22, wiping
out some of the big-box stores the city relies on heavily for sales tax
receipts. The flooding Mississippi River closed all nine riverboat casinos in
Tunica, Miss., this spring, leaving 4,600 hotel rooms empty for weeks and
depriving the county of so much tax revenue that it had to reduce its workers’
hours. But there are already stirrings of economic activity. Home Depot, whose
store in Joplin was destroyed, began selling lumber and other supplies from a
parking lot there on Tuesday as it prepared to open a 30,000-square-foot
temporary store.
Tamko National Football Shirt Wholesale
Building Products was doubly hit. Its plant in Tuscaloosa had to halt
production for weeks after the April 27 tornado destroyed a warehouse, blew out
windows and knocked out power. Then in May disaster struck closer to home:
Tamko’s headquarters in the are in Joplin, where the company was founded
in 1944. The tornado that tore through Joplin left Tamko’s facilities
undamaged, but destroyed the homes of roughly 20 of its employees.But as much
as it was buffeted by the storms, Tamko, which donated $1 million to the
Greater Ozarks Chapter of the American Red Cross, is well-positioned to prosper
once reconstruction fully kicks in. Its main product — roofing shingles — is
always in demand after a tornado.
No one would suggest that disasters are a
desirable form of economic stimulus. But economists who have studied the impact
of floods, tornadoes and hurricanes have found that after the initial anguish
and huge economic disruptions, periods of increased economic activity
frequently follow as insurance money and disaster relief flow in to jump-start
rebuilding. But reconstruction also attracts vultures who prey on the
desperate, through price-gouging or fraud. The Kentucky attorney general, Jack
Conway Germany Football Tops, accused the
Marathon Petroleum Company of price-gouging in April when it raised gasoline
prices steeply after the flooding Ohio River led to a state of emergency. The
company with the denied the accusation, and a judge denied Mr. Conway’s
request to force the Marathon to lower its prices.Alabama’s attorney general,
Luther J. Strange, recorded a public-service announcement warning people not to
be conned into paying steep “up-front” fees for construction work or to be
lured by “today-only” prices. “Let us be vigilant against unethical,
unprofessional contractors who seek to take advantage of our citizens in their
time of need,” Mr. Strange Replica Germany Away Football Shirt
says in the announcement.
Even as the natural disasters eliminated thousands of jobs, the needs of
recovery have created others. Companies like Unified Recovery Group, which is
clearing storm wreckage in Alabama in the and Tennessee, are hiring
workers and subcontractors to cart off debris. Construction companies are hiring,
too. In Tuscaloosa, James E. Latham, chief executive officer of WAR
Construction, said his firm had rehired workers who had been laid off during
the downturn and had added new employees to prepare for the work ahead, like
rebuilding an elementary school.