Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Irene Damage to Boost Economy?

Details

  • Description

    FBN's Peter Barnes breaks down how Hurricane Irene could help the economy.

  • Duration 2:24
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

On the weather from the so what was the financial impact of hurricane -- still being calculated it calls for Fox Business Network correspondent Peter Viles reports of Michael -- is bad.

As you might think.

The tragic losses now from hurricane Irene could deliver gains for the economy later.

Flooded homes close stores and employees absent from work are costing billions.

I have seen numbers you know a variety of people now -- reporting in the three.

Five billion dollar insured loss range but that's just.

Short -- uninsured could be billions more.

Now the rebuilding begins.

Include reconstruction from the Virginia earthquake and the economic boost could be significant.

On Sunday investment firm Cumberland advisors increased its forecast for growth in the fourth quarter.

From a one to 2% annual rate to a two to 3% annual rate.

That could equate to about thirty billion dollars or more an extra spending in the quarter.

And more jobs especially in construction.

Assuming rebuilding and federal recovery funding begins quickly.

It's not President Obama wanted to create jobs.

But He is proceeding with a new jobs plan that He will announce next week.

And today name Princeton economist Alan Krueger or a labor economic expert to chair his council of economic advisors.

Even as we deal with this crisis of the moment.

Our great ongoing challenges nation remains.

How to get this economy growing faster.

But the size of an economic boost from a hurricane recovery will depend a lot on how much extra money victims get.

From insurance companies -- governments state local and federal.

And whether they divert any existing spending on cars vacations and other goods and services.

To rebuilding some Republicans say any new disaster spending from Washington.

Will be paid for with cuts elsewhere in the budget no deficit spending.

As has been past practice.

In instances like this yes there's a -- -- yes we're gonna fund the money.

We -- just gonna need to make sure.

That there are savings elsewhere to continue to do so.

One major concern for some analysts is that this possible jump start for the economy may turn out to be only temporary.

And that stronger real growth won't take hold until Washington officials adopt better policies.

In Washington Peter Barnes fox.

Load More