The Acts of Nature and Their Effect on the Economy

Natural disasters such as tsunamis, tornados, sand storms, and landslides are inevitable. They can happen anytime and all at once. Some of them may happen within a short period and others may last for months. Some of these calamities are mild and some are violent. But all of them point to one similarity – their capacity to destroy the environment, properties, and lives.

All natural disasters are destructive. They result in the destruction of certain places, wash out untouched places, robs off natural habitats, and even kill people and animals. That is why alertness and preparedness are important for people from all walks of life.

Specifically, in the economic aspect, natural disasters are one among the factors that create massive damage to properties. That is why businesses, from small to large-scale industries, spend huge amounts to train employees on natural calamities and disaster preparedness. Even after that, larger companies, for instance, hire a Utah disaster cleanup team to ensure that life before a disaster came will be restored.

Why the Upheaval of Nature is a Threat to Economies

Until today, Japan is still on the process of recovery from the colossal damage caused by the Tohoku earthquake – a magnitude 9 earthquake that jolted Northern Japan on the 11th of March 2011, followed by a tsunami.

In a 2017 report, the estimated amount of the damage reached $199 Billion. The overall economic expense could go beyond $235 Billion, according to the World Bank. With the total economic costs it demanded, it was hailed as one of the most expensive and awful disasters in history.

This is only one example of how much damage the aftermath of a major natural disaster can cause. It causes huge damage to economies – business and real estate properties in particular. It could also mean a huge debt of a country to another.

After a natural disaster, starting life again is not easy. That is why countries who are affected by calamities experience food shortage, water contamination, and poor rehabilitation centers. Although world organizations, national and local government, and nongovernment organizations are in unity in the restoration, it is still not enough assurance that life will be the same way as before.

More than losing a huge amount of money, countries may also lose people during a natural disaster, including workers, administrators, and other employees that make up the business.

What We Can Do

Economic fluctuation concept

There are several ways to be prepared but it does not guarantee the eradication of natural disasters. Nonetheless, we can help build a more sustainable planet for the next years.

At some point, businesses in large or even in small economies are the top contributors to pollution, which greatly triggers the changes in climate patterns. These changing patterns then facilitate global warming and every year, the effects of irresponsible business-related operations trigger harsher and more violent natural calamities.

That is why being prepared is not enough for it takes a great effort to change the course of the future economies. It takes years and unified efforts. But with how the world runs today, can we all make the difference and avoid greater damages in the future?