The effects of Hurricane Katrina on the New Orleans economy: Hurricane Katrina devastated the New Orleans economy; tourism, port operations, and educational services, the foundation of the city's economy, survived, offering a base for recovery.(City overview)

Monthly Labor Review | June 1, 2007| | Copyright

On August 29, 2005, Hurricane Katrina made landfall on the gulf coast of the United States, east of New Orleans, (1) with the storm's eye passing within 10 to 15 miles of the city. The effect on New Orleans, as well as on the entire coastal region, was devastating.

In the aftermath of the storm, about 80 percent of the city (much of which is below sea level) was flooded. A recent article estimated damages in excess of $200 billion, making Katrina one of the most economically costly hurricanes ever to strike the United States. (2) Reacting to the widespread destruction, the ...

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