Chey DAngelo

Professor Lew Jeppson

Global Warmings Effect on the Economy
Econ-2250
Whether or not you like to admit it, global warming has an effect on you every day of your
life. Its a topic of heated debate not just in the comments of a random Facebook post with
random people, but at the family table at Christmas. Working in finance, I know that the one
thing people will defend more than they health and their children, is their wallets. There are three
economic points that I want to bring up, when it comes to global warming. Though extremely
controversial, they may make some people think about what they are doing to the earth. The
topics are: damage to property, migration, and industry. They may seem to be opposites, but
they tie together.
I mention damage to property first, because I feel that this is the most relevant, from the
past few months. In 2017 alone, The Atlantic Ocean has 17 named storms. The three most
recognizable being Harvey, Ima, Jose, and Maria. These were record breaking hurricanes that had
an enormous effect on our economy. Not only hurricanes, but typhoons and tropical storms all
put a strain on national economies. With warmer ocean waters (due to CO2, water vapor, and
other gasses keeping in heat), become, not necessarily more tropical storms, but those tropical
storms turn into raging hurricanes.
Lets go back to the cost of the hurricanes. Harvey1, for example, cost $180 billion in
damages. Now, if that doesnt sound like a detriment to an economy, I dont know what does. It
damaged over 200,000 homes, displaced more than 1 million people, and kill around 50. This
$180 billion encompasses many things. Some of which are: cars, buildings, utilities, roads, homes,
and so much more. It put hundreds of thousands out of work for weeks, small business owners
lost everything, and children were out of school. It affected the city, but what I didnt think about,
until I helped with hurricane relief by work 32 days straight, was how many individuals were
effected. They may have lost family members, been out of work, and nowhere to live, but they
still had mortgages, auto loans, credit cards, and insurance to pay. Just because it happened, the
rest of the world didnt stop. Even though the hurricane only2 badly hit parts of Texas and
Louisiana, it is costing every tax payer more, due to the government assisting with rehabilitating
the city. Its not something that we [the tax payers] can really complain or get mad at, like other
issues, because it was a hurricane. They didnt have a choice, and they shouldnt be punished for
an act of God.
Migration and immigration are those issues that causes just as much, if not more, outrage
between people. This topic is encompassing both legal migration and illegal immigration. It
sounds weird, I know. How does moving have anything to do with global warming? In Siberia, it
is starting to warm up. No, its not 75 degrees in the winter, but the temperature is rising, which
means that their permafrost is melting. This is causing a loss of jobs, as their animals are not used
to the warmer weather, and are dying. When people from Siberia, Brazil, and Miami lose their
jobs, they all have one thing in common. They all move elsewhere, where they can find work and
survive. If 100 families from all of these places happen to move around the United States, then
there are 300 less jobs in those states, and the country for people who are already living here,
thus making more migration.
Now, lets say that 75% of those families from Siberia and Brazil did not adequately
prepare for moving, and didnt have time to get the correct documents, and moved here illegally,
then it creates even more issues. Now, along with taking the jobs, they arent paying taxes, using
our schools, and everything that we, as citizens pay for. The fiscal burden of illegal immigrants in
the United States is roughly $54.5 billion a year. Over time, that poses a huge threat on our
economy. We dont have that extra money as a nation, so we keep borrowing from other
countries, and in turn, our national debt gets higher. All of these things can lead to financial
crashed, like the ones in 1929 and 2007. Its a domino effect.
The last issue that I will bring up, is industrys effect. This can come in many different
forms, but the one that is the costliest is cutting corners. Building a new facility is expensive, no
doubt. Whether youre a coal burning plant, a gas station, or a Verizon cellphone tower, it is going
to be more than a chunk of change and an extremely long loan term. Sometimes, businesses
want to cut environmental corners, because in the long run, saving $50,000 is going to make a
difference. In the end, regulators find out, because of things called environmental reports and
inspections, and they have to either shut down and fix it, or fix it as fast as possible. No matter
what, they charge fines, and boy are they hefty. One may think how this has anything to do with
the economy. As a consumer, youve felt it before. You power bill goes up, your cellphone gets
$5 more expensive, or for some reason, a product you buy at the store went up $0.25. Little
things like this alter the economy, and even if the company got away with putting out more
emissions for only a month, it is still hurting the ozone, and our pockets, more than need be. Even
with the production of Teslas, and solar power, yes, its helping with global warming, but the
government grants are increasing taxes, as well.
If people paid more attention to the science and effects of global warming, we may
actually get someone. Storms are causing some of the most expensive damages. Migration, due
to job loss, is causing less jobs, in the places where those people are migrating to. Industries are
cutting corners, which in the end, not only hurts them, but the consumer. It is effecting people
every single day, and where it hurts the most. Now, people just need to wake up and realize the
economic strain it is putting on the country and world, before it gets even larger.

1: The effects of the hurricane are not yet over, so these numbers are approximations.
2: Hurricane Harvey hit other countries, such as Belize, Cayman Islands, Nicaragua, Honduras, etc.

References:
Global Warming Effects on the Economy. (n.d.). Retrieved December 01, 2017, from
http://www.climatehotmap.org/global-warming-effects/economy.html

Q. (2017, July 13). How Does Global Warming Affect The Economy? Retrieved December 01,
2017, from https://www.forbes.com/sites/quora/2017/07/13/how-does-global-warming-
affect-the-economy/#3db233f934a1

Amadeo, K. (n.d.). Winners and Losers of Global Warming. Retrieved December 01, 2017, from
https://www.thebalance.com/effects-of-global-warming-on-the-economy-3305692

(2017, September 3) Hurricane Harvey Damages Could Cost up to $180 Billion. (n.d.). Retrieved
December 01, 2017, from http://fortune.com/2017/09/03/hurricane-harvey-damages-cost/

Richwine, P. J. (2013, May 6). The Fiscal Cost of Unlawful Immigrants and Amnesty to the U.S.
Taxpayer. Retrieved December 01, 2017, from
http://www.heritage.org/immigration/report/the-fiscal-cost-unlawful-immigrants-and-
amnesty-the-us-taxpayer

Starvation has killed 80,000 reindeer in Siberia because of melting sea ice. (2016, November
23). Retrieved December 01, 2017, from http://www.independent.co.uk/news/world/europe
/starvation-reindeer-siberia-melting-sea-ice-global-warming-climate-change-a7434746.html