Hurricane Sandy's Price Tag May Be the Biggest October Surprise...Will Affect Black Friday
A little discussion here about something that is going to be a victim of Hurricane Sandy that won't show up for a few months.
You can kiss "Black Friday" GOODBYE.
The cost of this storm is going to really be felt in November when we look for Christmas to give the economy a bump. I don't think it's going to happen. Last year people went out and spent money. They are still paying off the bills and the economy did not get that much better.
Most people in the Mid-Atlantic from Maryland to Maine have spent extra money on Hurricane Sandy. That money adds up and most people do not have that much money that it won't affect them later on.
All of the people who went out to buy Hurricane Supplies... used or not.. needed or not ...took that money from somewhere and it will come from the money they do not have after Hurricane Sandy passes and they will most likely have big credit card bills for those extra supplies they bought just in case the worst happened.
Also............many people do NOT have vacation time, sick leave and will not be reimbursed for time lost during Hurricane Sandy. Many people today share jobs and work two part-time jobs, it saves employers from having to give benefits for full time employees.
One Year in Miami the library was closed for 13 days. I didn't get paid for those 13 days. Money was tight and I was raising kids on my own. It was all I could do to pay the utility bills and basics. If that scenario plays out in Newark, New York City, Baltimore, Philadelphia... between loss of income, money put out for the storm that was not expected and repairs that must be made around the house and the yard... it will be a "Hard Candy Christmas" for people who don't have money left to go out and buy cute toys, gadgets and a new winter coat. Actually, since they barely wore last year's winter coat and boots... they most likely will NOT go shopping.
Long term hurricanes boost the construction business.
Short term they help the economy, because people go shopping like there is no tomorrow.
Mid term... they are not going to go out in November and buy lots of things for Christmas. The will make do, buy less, celebrate in other ways.
Add onto that a severe winter that could start early, as early as the day after Sandy... money will be needed to heating fuels and bills and...
Hurricane Sandy may have destroyed piers, sunk tall ships and left a horrible death toll, but it's biggest punch in the gut may be in late November and early December when people decide not to spend money while they are paying off bills that Hurricane Sandy racked up in October.
And, THAT may in fact be the biggest October Surprise that Hurricane Sandy has dealt us, but it won't be felt until Black Friday sales are down and don't get better as we move closer into December.
Everything has a price tag in life.
Sandy has a costly price tag and it will leave people without the money they had hoped they would have go to out and buy toys and presents for Christmas.
Hurricanes have a wide spread impact on the economy... this one will such a high price tag and the bills will be due just in November.
And, remember every day...and every week that it takes to restore power means every day that people will not be going to work as their stores will be closed and they will have to wait longer than expected. This includes jobs that have income generated by "tips" such as waitresses and waiters, taxi cab drivers, etc... people who rely on a daily flow of money that will suddenly come to a grinding halt due to Hurricane Sandy.
Just something to think on...