eco journal 3 - in construction output in January This...

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Ryan Pool 18 February 2011 Economics Period 4 Magazine- The Economist February 2011 Eco Journal 3- Environmental Effect on Economic Production Many factors go in to the economy and its growth or recession, one of the obvious ones this year being the severe weather that has plagued much of the Northern hemisphere. The intense bouts of snowfall this year have forced many businesses to simply close their doors in the midst of an already struggling economy. The weather kept entire cities closed down for days sometimes weeks at a time, thus knocking down production. Production is the ability to create and supply goods and services. Many hours of production were lost this winter many of which will not be recovered. Certain companies are able to recover from their lost time by pushing to work harder once the weather has passed, regaining the production that they lost. Other companies have had their production merely delayed, leaving production to be resumed at a better time. Others have lost their production all together. For example, Germany saw a 24% decrease
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Unformatted text preview: in construction output in January. This sounds bad, but the construction will be resumed and their production will continue as predicted in the spring; it is merely a speed bump. On the other hand companies that rely on day-to-day production, such as coffee shops or restaurants, are finding themselves in a tough position. Companies like these find themselves faced with a complete loss over the days they were “snowed out.” Take a coffee shop for example; if there are 3 snow days in a row, those are three days of complete loss because a customer is not going to come into the shop on the fourth day and by four cups of coffee to make up for the 3 cups lost. When this principle is applied over the thousands of potential daily customers, there are some serious losses to be accounted. All together, our economy is probably facing a tougher spring due to production losses this winter accredited to environmental hazards....
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eco journal 3 - in construction output in January This...

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