Hurricanes, tornadoes, and even winter storms can cause major problems for local economies. It is unfortunate that it happens but there is really no way that we can stop the weather from happening. Have you ever thought about how the weather where you are affects the economy in your town? It is worse for the small businesses than it is for the big chain stores, but all feel the effect.
Maybe the weather is not too bad and it only causes more people to stay home than otherwise would. This means that there will be fewer sales than normal at the stores. Stores will lose money and if it is that slow often they will send an employee or two home because they do not need so many people when they have no customers. This leaves those employees going home with a few missing hours on their paycheck making it a smaller check, meaning they can do less with it.
Say the bad weather lasts for two or three days. This is like the scenario above only longer. The stores lose even more money and the employees use even more hours, which means their paychecks will be even smaller. This has an effect on their spending habits which will cause the stores to have fewer customers for some time because of it.
Then there are the times where the city is either shut down for days, or the city is destroyed, this causes a complete breakdown in the city’s economy. Big chain businesses will be able to recover from a situation such as this, but small local businesses often cannot or have a very hard time getting back on their feet. When weather like this happens, the economy is destroyed right along with the city and takes just about as long to build back up as it does the city.
When the businesses shut down, the employees do not go to work. When the employees do not go to work, they do not make money, when they do not make money they struggle to pay their bills. When this happens, they typically have no money left over to go shopping for other things that could be considered luxuries. This causes the businesses, once they are open again, to not get the income that they would expect under normal circumstances. Because of that they may not have as many employees working as often, which leaves the employees with smaller paychecks. It is a horrible cycle, all because bad weather came through and shut down operations for a bit.
Not many people think about the economic side of bad weather. They should though; it can cause a lot of economic damage to have bad weather, not just bad roads or some damage. There is more to bad weather than people think and if you look at it as a whole, you will see how bad weather can and does affect the economy of a given city.
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