Whenever the supernatural event happens it leaves with high damage to life and property. It washes away from people’s livelihoods which do take many years to get normalizes. In many cases, there are catastrophes where all the belongings of communities are harshly affected. Hereby, people may have to stay for a long time at home which will have a high droop on business too. Even after leaving, the destruction it inflicts upon the country or a state is immeasurable. However, we’ve put together some of the worst effects it can have on the economy of a country which is mentioned below.
Direct and Indirect Losses
- The losses occur because tornadoes have a high impact both directly and indirectly on a country’s economy. The loss of earthling, animals, crops,factories, homes and natural resources are called as the direct losses whereas the loss of production and sales, incomes and labour time, decrease in radioactivity, service interruption are the indirect losses.
- Estimation of indirect losses is very difficult because to calculate the direct cost one has to examine the total value, reduction in the value of assets or to sum up the grand loss of income that causes the loss in the asset generation. The indirect losses can be embodied in the decreased economic activities, lost taxable receipts of the country. The afflicted country uses its federal disaster relief funds to regulate, repair and succeed the lost assets.
- We all know that tornadoes are destructive events. It has potential to upheaval human lives, it has the devastating power to ruin the workplace, crops, the means of communication and interaction with the outer world can get impaired. Only the survivors can experience how severely the devastation caused by the tornado can impact the lives of the locals. Although the replacement and regulation activities are putting efforts, it would not be sufficient enough to recover all the losses that the place went through.
- Tornado destroys the country’s small scale firm production, equipment, buildings, availabilities of raw materials which influence the production capability while in some cases the firm is forced to shut down due to destruction. Small and medium scale firms are the main support system of a country’s economy and shutting down of the firms will affect the economy.
- Tornado changes the local economic condition and affects the revenue generation too. For bringing back to the normal condition, contractors and people specialized in disaster management are appointed for rebuilding and to bring back the normalcy.
However, there are technologies available today which can’t totally erase the natural calamities or disaster but can decrease the number of losses to some extent by forecasting it and preparing for it. It can be a wise move for a country or a nation to prepare and protect their nation from livelihood damage & economic losses. As it is said that “something is better than nothing”, so it’s better to save something before everything gets shattered.