Every enduring agrarian society learned to store surplus harvests for infertile times. Conversely, during the last global credit bubble, most countries followed an unwise philosophy of simply spending more.
As the global economy has somewhat stabilized for the moment, the global environment has not. Recent large-scale tragedies include earthquakes and tsunamis in Haiti, Chile, China/Russia/North Korea, Hawaii, and Japan. All of these damaged regions require aid from those more fortunate.
As more natural disasters require billions of dollars in costs, it appears we have one more speed bump in the way of economic healing.
Do you think the costs of natural disasters has been overlooked by optimistic economists? Share your thoughts in the comments below or click here to join the discussion in our new Forum.