Devastating California wildfires predicted to cost US economy $85 billion; Containment may take weeks
(Worthy News) - Devastating fires charring California have claimed more lives than any fire in the state's history, and the economic toll is predicted to climb to $85 billion.
"These wildfires, especially in Northern California, are particularly devastating,” said Dr. Joel N. Myers, founder, president and chairman of AccuWeather.
“We estimate the California wildfires will profoundly affect the economy of California. The cost to contain and fight the fire and deal with the aftermath will be in the billions. And, the loss in tax revenue from businesses no longer around, including the vineyards; the workers who have lost their jobs and can no longer pay taxes as well as other impacts will be quite costly.
This will create a hole in the California budget, which may necessitate an increase in taxes. If California has to borrow more this might negatively impact its bond ratings and it will have to pay higher interest rates on all borrowings, which can cost upwards of 10s of billions of dollars. At this time, we estimate the economic impact of the fires is already approaching $70 billion dollars. Based on our forecast the total costs from this disaster on the economy would exceed $85 billion and, if the fires are not contained in the next couple of weeks, the total economic impact could even reach $100 billion.” [ Source: AccuWeather (Read More...) ]