How Natural Disasters Affect the Market

How Natural Disasters Affect the Market

                This past month, the raging wildfires are eating up Southern California as firefighters continually try to contain the damage. Unfortunately, the fires are being carried due to the "80-miles-per-hour"gusts of wind known as the Santa Ana winds, making it difficult on the brave men. Most of the damage done was to hillside mansions and downtown Ventura. This forced tens of thousands of people to move away to find safety.

                Many might wonder how this might affect the market. Unfortunately, it does a great deal. When natural disasters hit, many people are less keen to spend money on luxurious goods but rather pay for essential things like food and water. This puts a slight dent on the economy. Also, since most damage has been done on mansions, this means that the capital spent on luxurious items is probably great, since rich people don't have to worry about what to eat but rather spend on goods that are otherwise hardly accessible to people. However, this changes since now their priority isn't buying the next iPhone but rather on a hotel room or new apartment somewhere away from the fire as well as saving money to redo all of the damage caused by the fire. This includes floor boards, walls, wall decorating, furniture, perhaps plumbing...
For people within that business, this sort of natural disaster is perfect for them since it increases their customers and makes them invaluable. One's man's hell is another man's heaven. Nevertheless, it is horrible to think that these companies would up their price because they know they will soon be on demand. That would be quite unfair and greedy, even if their new-coming customers have the means to pay.