Hurricane sandy was the second largest in terms of the economic damage and deaths that it caused in the United States after Katrina. The part that was affected mostly was New Jersey. It is estimated that over 5000 structures, which includes residential houses, and business buildings were destroyed which means that people lost much of their property.
The costs that were incurred from the storm were due to the storms, rain, and floods that were witnessed in the region. The storms and rain that led to flooding led to destruction of buildings that were used previously for business purposes. Some of the people who owned the businesses had not insured their buildings and as a result, they had to seek funds to replace their businesses. The storms that were present due to the hurricane meant that provision of goods and services was not possible. Retailers found no customers to serve due to the storms that were present. The economic costs of this are that the business people lost income.
The businesses in New Jersey were also affected due to the destruction of infrastructure. Roads were affected by rains and floods and it became impossible to order for goods or supply them to their customers. Trade activities were therefore stopped by the hurricane and these traders incurred losses because of the incident.
Even after the hurricane had stopped, the people in New Jersey suffered several costs. In the first place, they had to replace their destroyed buildings and stock their businesses as before. This involves costs and some families found it difficult to run their businesses any further. This is because some of these businesses were not insured and therefore, they did not receive any help from insurance companies to replace their businesses. The process of replacing these buildings and stocking the businesses still required time. During this period, these businesses were not operating and hence were running at a loss, which is a cost to the owners.
Wages also form important source of the gross domestic product of the economy. Many people lost their wages due to the effects of the hurricane. This is because with the storm, floods, and the rain, people could not report to their places of work and as a result, they received no wages. When there were repairs after the floods had ended, the employees in the retail shops needed no workers considering that there were no activities going on in the businesses. As result, people lost their wages, which is a source of their livelihood. This also shows that the gross domestic product of the state was affected considering the large number of employees in New Jersey.
It important to note that some people benefited from the hurricane. The people who were involved in the construction of roads and business buildings got jobs as a result and this was a source of their income. The other advantage that was brought about by the hurricane is that old buildings were replaced. Investments in New Jersey increased because of the hurricane. This is considering the fact that people realized the need to insure their business property as well as construct strong building that can withstand storms and floods.
In conclusion, hurricane sandy affected the lives of the people in New Jersey both during and after the hurricane. It stopped business activities and as result, investors lost profits and the employees found no jobs at the period. Generally, the lives of the people in New Jersey were largely affected by the hurricane through economic loss.
Chad S. (2012). The economic impacts of hurricane sandy. Retrieved from; http://www.usnews.com/opinion/blogs/economic-intelligence/2012/11/02/the-economic-impact-of-hurricane-sandy