Expert: South Dakota Won’t Feel Big Economic Impact From Recent Hurricane Activity
SIOUX FALLS, S.D. – An economics professor at Augustana University says South Dakota likely won’t see any huge negative effects due to the recent hurricanes.
Robert Wright, the Nef Family Chair of Political Economy, says that gas prices will probably continue to rise a little, only because some oil refineries in Texas were shut down as a result of Hurricane Harvey.
He says only if we have a series of large natural disasters could we see a financial crisis, “which might mean that things like mortgage funds might dry up, interest rates could go up or just the quantity of mortgages available could decline, which would mean that the housing sector would slow down.”
Wright says much like what we saw after Hurricane Katrina, construction crews may head South to help with rebuilding.
He says the misconception is that natural disasters are good for the economy just because resources are flowing into that area. However, rebuilding means people have less money to buy other goods and services.