The paper "Impact of Natural Disasters on the Growth of Economy" is a great example of a Macro & Microeconomics essay. According to Lindstrom et al. (2011), a recent natural disaster in Australia is the flood in Queensland which affected approximately 60% of its population. This unexpected severity of the floods in Queensland took many lives with a great number of citizens recorded as missing due to the event. The cost of human lives lost because of the floods cannot be measured in terms of dollars but there is no doubt about the amount of trauma associated with the destruction, loss, and grief caused by the floods in families and the whole community.
Homes, businesses, infrastructure, and agricultural crops were destroyed in all-natural disasters in Australia. In the process of rebuilding Queensland, politicians claim that the recent floods have been very expensive in the history of Australia and new policies will be implemented to raise the economy and living standards of the citizens of Australia. The social impact of natural disasters has improved because people work together to rebuild their lives while the economic impact has declined.
The estimated damage to government roads, waste facilities, water supplies, airports, and buildings amount to $2 billion in Queensland (Lindstrom et al. , 2011). Australia has incurred an economical loss of $ 5-$6 billion due to the floods. This has been caused by disruptions in production especially in the mining sector while the costs of businesses and household levels have increased. The damage caused by the recent floods are been assessed and rebuilding processes initiated in homes and buildings which have or do not have insurance (Lindstrom et al. , 2011).
In research carried out by Matrix Planning Solutions (2011), the recent cyclones, extreme weather, and floods in Japan and Australia have caused the loss of many lives and economic decline in both countries hence affecting the global economy and the rise of the cost of living. In Japan, the death toll of the earthquake and tsunami is approximately 10, 000 while the cost of rebuilding homes, buildings, infrastructure, and hospitals is $200 billion (Matrix Planning Solutions, 2011). Short-run Effects of Natural Disasters on the Economy The floods in Australia in 2011 have caused disruption in production at ground zero.
This is the place which was mostly affected by the floods and everyday services were halted. The most important destructions were loss of land for crop production, damage of roads, power, and transport shortages in Australia (Matrix Planning Solutions, 2011).
Herr, H, & Kazandziska, M. (2011). Macroeconomic Regimes in Western Industrial Countries.
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Lindstrom, P, Fenton, C, Lawn, C. & Thorpe, J. (2011). Economic Impact Of Queensland Natural Disasters. Price Water Coopers Official Report, 1-5
Matrix Planning Solution Limited. (2011). When Nature strikes - The Impact of Natural
Disasters. Retrieved on 24th June 2011 from
OECD. (2011). OECD Economic Outlook. Volume 2011, Issue 1. Queensland: OECD Publishing