How much will Hurricane Irene cost us? Think billions.
Peter Morici, an economist and a professor at the University of Maryland’s Robert H. Smith School of Business, tells the Baltimore Business Journal to expect $20 billion in direct damage and $25 billion in loss of business activity.
There is a bright side, though, and it’s not just the beautiful weather we’re having. Morici said business will boom with rebuilds and buy-ups, because those who lost something will likely go bigger with the new version, whether it’s repairs to a shore house or a replacement washing machine.
Even if insurance won’t cover the full cost, he says, people will pay the difference, which Morici expects will be $20 billion.