Climate change causes extreme damages to the world around us. Damages to the environment, human and animal health, and so much more. With these damages comes a cost, higher repair costs for the more damage done. Climate change imposes financial issues globally. Have you ever thought about how much money it takes to bounce back from these extreme damages?
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In the United States alone, the total cost of climate disasters between 2018-2022 exceeds $617 billion. 2022 is currently the United States' most costly year on record with a total cost of $176 billion. The event that costed the most was Hurricane Ian that covered around $120 billion of the $176 billion.
Between 1990 and 2019, an average of 6 natural disasters causing more than $1 billion in damages occurred per year. With a total annual loss of just under $50 billion per YEAR.
One of the most recent natural disasters being the California wildfires has taken quite the toll on residents and neighboring cities. Residents had to pack up and leave their homes, only to come back to no home at all. Homes, businesses, and land were destroyed during these wildfires. Leaving thousands of people without homes, jobs, and so much more. In fact, a couple of days ago Governor Newson signed a relief package for Los Angeles granting $2.5 billion to help with the relief process.
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These disasters also raise the prices of consumer goods, which increases household strain. Droughts, wildfires, and other natural disasters can affect agriculture and production, increasing costs due to shortages. Because the United Stated imports a heavy amount of consumer goods, citizens are paying both foreign and domestic cost increases.
Another household financial strain that causes worry is the increase in energy costs. The increased need for heating and air conditioning due to extreme temperature changes can cause utility bills to sky-rocket.
Business owners are at the brute end of these disasters as they lose out on their overall income and support. The loss of these jobs not only affect employers but also employees.
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A major component of these disasters is the financial downfall of the residents and the loss of their jobs. While these disasters destroy not only their homes but the places of which they work they have to find new ways to make money. Some people actually migrate elsewhere to restart their lives and try to gain sustainability in other parts of the country or world. Employers as well are out of money while they wait for their companies or businesses to be rebuilt and operating again.
I had no idea how expensive climate disasters were and how much it has raised over the years. Unfortunatly, like you said these disasters, such as droughts, tornados, and wildfires, will cause a lot of people to lose their jobs, and money. I hope that people in the California that have been affected the last couple of months, make it to the other side of this disaster unscathed and can pick up where the left off.
ReplyDeleteI had never thought of this before. We get the idea pushed on us that putting money into research and the environment is a cause of so much trouble for taxpayers but we never hear how much of our money is being put towards the reconstruction of these areas or the residents who struggle from their own financial strife after these disasters.
ReplyDeleteExactly, the cost of repairs after disasters is so extreme that we ought to invest in preventive measures first.
DeleteLindsay this is spot on, we spend SO much money in repair, when we need to start investing in preventing further damage.
DeleteI think you capture it pretty well that we need to invest in green technology now. The economic impact of climate change related disasters is huge.
ReplyDeleteThis was a great blog because a lot of Trump's choices are based on financial reasonings. Such as pulling out of the Paris Agreement because it wastes the taxpayer's dollars. Yet, climate change has billions of dollars in costs.
ReplyDeleteI agree! Trump bases a lot of his choices based on money, whereas he should be putting money towards climate change prevention measures in order to save more money in the end.
DeleteThis blog does a great job of highlighting the financial toll of climate change and the ripple effects it has on individuals, businesses, and entire economies. I have never thought of everyday necessities (food, energy) being more expensive due to climate disasters.
ReplyDeleteClimate change is a global issue, not only because it's happening worldwide, but also because we are a global economy. When one country's industry begins to suffer, so too do other industries begin to suffer. There is no tariff'ing or isolationism that will save us.
ReplyDeleteThe other big financial issue of climate change is that of insurance. Insurance agencies are tanking huge costs to be able to cover damaged properties. Truth is, without raising premiums through the roof, their pools of money will dry up. Premiums can only go so high, and they can only cover so many successive disasters before they undergo collapse and leave behind millions of uninsured.
This is such a great point. i feel like our insurance systems have always been broken, but only recently have people really seen how bad it can get. Our medical systems cannot keep up with the rate of people who need coverage and can't get it, and it's the same way for those who need protection of their personal property. America has been founded on ideals that need to adapt with the current times. These times call for massive policy adaptation and the upheaval of private insurance companies.
DeleteThe problem with climate change is that it is not a free solution. It is going to cost money for several solutions like solar and wind energy. The big companies would have to pay to fix these solutions and set up new systems however, at this point any more spent on green acts is worth the investment for the future.
ReplyDeleteThank you for touching on this topic, it's often left out of the media reporting when tragedy is at an all time high. Yet, tragedy is continuing when homes are never rebuilt, and people are in debt and homeless as a result. To avoid spending money on the climate to be fiscally responsible to taxpayers is a false argument that Trump has plastered all over, and I believe it is part of the reason American politics refuses to invest in the climate. Investing early before the natural disaster hits can mitigate the overall damage, and maybe policies in place will grant funding that never would have been received otherwise.
ReplyDeleteI feel like this piece is really pertinent, especially with our reading of "Fire Weather". It became excruciatingly obvious throughout the book how heavily the financial tax of climate change is levied against people. The toll is not only physical but fiscal. It was really interesting seeing you expand this discussion into a wider investigation.
ReplyDeleteThis is very good information to know! I never really thought about people losing their jobs after a natural disaster because I assumed their employers would have insurance to help assist their employees. I have heard that insurance companies will stop insuring homes that are in flood or fire prone areas altogether. I see this as a benefit because people will not be living in dangerous areas. But where do they go? Where do they want to go?
ReplyDeleteThere is a famous musician from New Orleans named Allen Toussaint that called hurricane Katrina a “blessing” and that, “it inspired him to try new things and collaborate with others”. - Allen Toussaint
It is unbelievable the amount that is spent on disasters and it is only getting worse. I could not believe it when I saw how much snow the south was getting, while California is on fire, and so many towns are recovering from wild disasters. Even Kalamazoo and the tornado, I drive by where it hit five times a day and it looks like it hit some of these houses yesterday.
ReplyDeleteI've never really considered the numerical value of the finances lost to climate change, but these numbers are astonishing. You would think there would be a higher incentive to implement climate action especially since it could create jobs to help repair the economic toll from natural disasters.
ReplyDeleteI have never thought about the financial aspect of the recovery from the results of climate change, this was super interesting! The fact that there were over 617 billion dollars in damage in only four years is a staggering statistic. I also never thought about the increase in consumer goods and the strain this puts on households. I wish articles like this were publicized more. Maybe then the individuals only concerned with money would start to pay attention.
ReplyDeleteThese numbers are so crazy to me. What ways can we all help with this? These people are ripped from their homes because of the disasters and I can't even imagine how that must feel. What will we do when the numbers required for relief are more than is possible?
ReplyDeleteIt's already so much. The thought that it will only get worse from here is terrifying as well.
ReplyDeleteif we had big companies pay for the damages they caused with climate change then maybe they would finally be motivated to stop destroying the earth
ReplyDeleteBoth companies and employees experience financial instability and job losses as a result of the economic strain. It is imperative to address climate change in order to lessen these dire financial consequences as well as for environmental and health concerns.
ReplyDeleteIt is unfortunate that the climate change and increased extreme weather is forcing people to migrate to other areas just tov have financial and physical saftey from these effects. I worry about the long term impacts of this phenomenon on a global scale though, what happens when certain cities, states, or even countries lose large numbers of residents and resources and can't provide for their remaining residents. Additionally, what about the strain that could be placed on the areas where people are migrating to?
ReplyDeleteIt is so hard to fathom the amount of money that recovering from climate disasters and extreme weather costs. You make a great point of emphasizing the personal financial impacts that these disasters have on individuals and families who are forced to evacuate or lose their homes or loved ones.
ReplyDeleteI knew that the damages from natural disasters were expensive, but I didn't realize that because of climate change, they are getting worse causing more damage than ever. It is scary to think of what will happen if temperatures only continue to rise. I think that this was a great post and extremely well written. The first photo you provided was really informative and helped create an image in my head of what's really happening.
ReplyDeleteThe issue of cost may be one of the most important ways to convince people to act. The cost of "natural" disasters has risen dramatically over recent years. Yes, it will be expensive to transition to renewable energy, but that will be so much cheaper than the alternative.
ReplyDeleteThe financial toll of climate change disasters, from property damage to rising consumer prices and job losses, underscores the urgent need for proactive action to mitigate future costs and protect communities.
ReplyDeleteThis post really drove the point for me personnaly, that the best time to take action towards climate change is the present. While preventing these disasters can be expensive the cost of these disasters themselves and the damage they do not only the land but to the wellbeing of the individuals that experience them are far more expensive in the long term.
ReplyDeleteGreat post! I had no idea climate disasters cost the U.S. over $617 billion in just five years that’s wild. It’s crazy how they impact homes, jobs, and even daily expenses. Looking forward to more of your insights!
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