How Did The EARHTQUAKE In Haiti Effect The Economy?


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THE EARTHQUAKE in Haiti effected the Economy because since the earthquake destroyed so much of Haiti's infrastructure, they have to have money to build it up back. That needs a lot of money so then their economy would become even worse because of this expense. Obviously, this earth quake has had a large impact on Haiti's economy.
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Anonymous commented
Good thinking,,, But this is not what actually happened in the Haiti economy... In the short run, because all the infrastructure, now the govenment has to spend money to build it back. Therefore, this will boost our economy due to increases in government expenditure which has a multiplier effect on their economy and thereby increasing GDP.

However, in the long run , due to the decrease in savings, the economic growth will slow down over time given the increase in government spending...

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