Fiscal Policy of Hurricane Katrina: Article Review

A detailed Summary of Fiscal Policy of Hurricane Katrina: Article Review

Given the extent and damage of the most important natural disaster in the United States in the last hundred years, an article referring to Hurricane Katrina and, most significantly, to the extent of the damage, to the reconstruction possibilities and to the bearing these will carry on the US fiscal policy and the US fiscal deficit, the article Hurricane Katrina upends American fiscal policy1 is appropriate to explain relationships between governmental spending and overall fiscal policies, as well as the impact on national fiscal policy.

The article refers strictly to the impact on the US economy and US fiscal policy that Hurricane Katrina has brought about. As cynical as this may be, the logical relationship between Katrina, governmental spending, fiscal policy and, in the end, economic growth in the US, is quite simple to explain. The hurricane has brought about huge amounts of losses in the US econ

A certain effect is quite certain to be observed here as is particularly mentioned in the end of the article: the US fiscal outlook is likely to worsen in the period of time to come due to the negative effects brought about by Katrina. Any tax cuts that may have been included in the Republican program will need to be laid off for a certain period of time, mainly because one cannot afford to reduce the principal source of income for governmental spending.

Third of all, destruction to energetic facilities is important because it reduces the offer on the domestic energy market and this will naturally lead to a certain increase in price level, hence, to inflationary pressures, especially on the energy market. This is why the article mentions stagflation, as inflationary pressures with a slowing of overall economic growth.

On the other hand, Katrina will also bring about a reduction of the economic gr

Some common words found in the essay are:
George Bush, President Bush, Hurricane Katrina, , economic growth, governmental spending, fiscal policy, natural disaster, hurricane katrina, brought natural disaster, energy market, extent damage, fiscal deficit, inflationary pressures, brought natural,

Approximate Word count = 611
Approximate Pages = 2 (250 words per page double spaced)

Category: History

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