Nissan shuts Down

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.

Red__Zed

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.

spinhead

Also US infrastructure wasn't destroyed by WWII (Pearl Harbor wasn't industrial infrastructure). Now, everyone else's infrastructure being destroyed and you being left as the world's supplier for everything certainly does help. Case in point post WWII USA.

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Consequences will never be the same.

OldGuy

However, Japan may have to sell many of the US Treasury Bonds it holds to raise money for its rebuild. That will increase the supply of US Treasuries abroad and require us to pay higher interest to those who buy new issues of US Treasuries from us hereafter, all increasing our debt service expense and our budget deficit. This catastrophe is no good for any one.