Everybody can agree that the true cost of Hurricane Sandy is the scores that have died, not only in the United States, but across the world. Everybody that is, except for economists. Matthew Zeitlin reported on their best estimate for the dollar cost of Hurricane Sandy:

• Insurance companies will likely have to shell out $10 billion to individuals who saw their property damaged.
  • This high cost is in part because New York is an extremely rich area.
• New York City also has to pay to pump the water out of flooded areas such as the subway stations.
• While the city’s infrastructure is down, workers won’t be able to go to work, and customers won’t be able to go to shop. This will impose high indirect costs to the economy.
• Tourists will also have a difficult time spending money in the city.
• This might just be the beginning. Climate change could mean more frequent disasters of the same magnitude as Sandy.

Read more about the costs involved and why the United States is the country that is likely to be the most affected by Sandy over here.

Source: The Daily Beast