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EconoMeter panel mops up after fires

Roger Showley, U-T SAN DIEGO

Friday, May 23, 2014

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Kelly Cunningham, National University System
Answer: NO

The destruction and cost of battling fires certainly affects the economy, and some individuals and families are much more directly impacted. A majority of literature on economic impacts, however, suggests limited or contained disasters such as the fires occurring last week will have minimal long lasting detriments on the overall economy. Consumption that would have occurred is shifted and businesses make up lost productivity. A longer lasting impact may result with greater frequency of major wildfires decreasing demand for homes in fire-prone areas and increasing sales of products such as fire retardants helping to protect property and combat fires.