Economic effects of Hurricane Katrina
The economic effects of Hurricane Katrina, which hit Louisiana, Florida, Texas and Mississippi in late August 2005, were far-reaching.
In 2006, the Bush administration sought over $100 billion for repairs and reconstruction in the region, making the storm the costliest natural disaster in US history.
One study, by Mark Burton and Michael J. Hicks, estimated the total economic impact to Louisiana and Mississippi may exceed $150 billion.
[2] Hundreds of thousands of residents of southern Louisiana and Mississippi, including nearly everyone who lived in New Orleans, were left unemployed.
There was also some concern when, on September 8, 2005, President Bush temporarily suspended the Davis-Bacon Act in the affected areas, which allowed for contractors working on Federal construction projects to be paid less than the prevailing local wage.
[3] The concerns over these actions were primarily that allowing the government to pay less than the prevailing wage would contribute to increased poverty in the region, which already ranked among the lowest in the nation in terms of household income.
The storm interrupted oil production, importation, and refining in the Gulf eden, thus having a major effect on fuel prices.
Dick Cheney personally called the manager of the Southern Pines Electric Power Association on the night of August 30 and again the next morning and ordered him to divert power crews to substations in nearby Collins that were essential to the operation of the Colonial Pipeline, which carries gasoline and diesel fuel from Texas to the Northeast.
One platform, originally located 12 mi (20 km) off the Louisiana coast, has washed up onshore at Dauphin Island, Alabama.
One BP station in Stockbridge, Georgia, south of Atlanta, was selling gas at $5.87 per gallon ($1.55 per liter) less than a day after Katrina hit.
[8] Long lines developed at some gas stations throughout the U.S. as customers rushed to buy gasoline, anticipating price increases in the wake of the storm.
Emphasizing the seriousness of the situation and in light of similar incidents in his own state, Governor Mike Easley of North Carolina has issued a statement asking all North Carolinians to conserve gas, limit fuel consumption and non-essential road trips, and for state employees to car pool.
Aside from the problems involved in restarting the refineries (which is a lengthy process) there were additional major issues with worker housing, since a large proportion of homes were destroyed by the hurricane.
The Environmental Protection Agency moved to reduce prices by temporarily lifting fuel standards in America until September 15.
Treasure Bay's pirate ship was heavily damaged and washed ashore, it was subsequently dismantled down to the underlying barge.
Katrina was directly related to the controversial National Basketball Association Seattle SuperSonics relocation to Oklahoma City.
New Orleans' NBA franchise was forced to move temporarily; the Hornets (now known as the Pelicans after Saints owner Tom Benson purchased the team in 2013) chose a mix of the Pete Maravich Assembly Center in Baton Rouge, and the Ford Center in Oklahoma City while New Orleans Arena was being rebuilt.
[16] Gulfport, Mississippi serves as a major ocean shipping port for the southern United States, which was found to be inoperable for as much as one year.
[17] According to the Mississippi Forestry Commission, Hurricane Katrina caused significant damage to 1.3 million acres (5,300 km2) of forestland in the state.
