Quote:
Originally Posted by cossie1600
It's not always the case. The rebuild of infrastructure and manufacturing goes back to the local economy. WWII dug US out of the great depression.
|
Common misconception. Many people believe disasters boost the economy, but they generally harm it, and hamper efforts to improve things.
On paper, things appear to be getting better, due to job creation, inflated GDP, etc, but most good economists would disagree.
Occasionally, war or disaster will spark a recovery by forcing people to act immediately, but it usually would have been a more substantial growth without the war to instigate it.
Natural disasters are much the same way, with Katrina boosting LA's numbers on paper, but obviously not actually helping them get ahead.