Calamity Economics and Wenchuan earthquake (杨祖宪新编)
Calamity economics suggests that some businesses can benefit from reconstruction of a natural disaster like flood, a hurricane or an earthquake. Roofing after a Hurricane is one of these examples.
After Hurricane Andrew hit south Florida during the fall of 1992, many homes were left without roofs. The were not enough roofers in the area to repair all the roofs that were destroyed. Many people from other parts of the country with some background in roofing moved to south Florida and began roofing businesses. Some people had limited roofing experience but decide to quickly learn the business. Most of these roofers did not have a place of business but simply advertised in local newspapers.
Many of these new roofing businesses were successful because they provided a much needed service.
Wenchuan earthquake occurred at 14:28 on 12 May 2008 in Sichuan province of China.
The earthquake caused enormous casualties – the death toll is expected to exceed 90,000 – and left several million people homeless. However, it has had little direct impact on the country's industrial infrastructure.
` Some economists believe the great earthquake has hit the local economy a lot but the China’s national economy as a whole will remain strong. Actually it will boost China's economic growth, thanks to the billions due to be poured into reconstruction. The earthquake reconstruction will add0.3 percentage points to China's growth rate this year, the State Information Centre, a research group that is part of the government's main planning body, said yesterday.According to the State Information Centre, direct losses from the earthquake will reach Rmb400bn-500bn ($58bn-$73bn,