The following is an excerpt from the April 18 issue of The Wichita Eagle. Jeremy Hill, director of the Center for Economic Development and Business Research at Wichita State University, contributed to the article.
Tornadoes pick economic winners and losers
Homeowners who have seen their property reduced to rubble by the tornado that moved through south Wichita on Saturday are clear early losers, while the lagging construction industry is likely to get a boost, as are retailers who sell items such as cars, clothes and bedding that will need to be replaced.
The negative effects of a tornado come from damage to property and replacement costs for that property, as well as from lost wages of workers, such as those at aircraft companies, who are temporarily idled by halts in production, said Jeremy Hill, director of the Center for Economic Development and Business Research at Wichita State University.
Both those effects could create tax variables, as well, Hill said.
"If you have less income, you would be spending less during that time," he said.
The positive effect comes from a boost in new construction to rebuild ravaged structures, which will be particularly helpful for a construction sector that has been very weak, Hill said.