Question: [Analysis]Lately, a number of devastating earthquakes, fires and hurricanes have been in the news. While most agree that these are tragedies, some people believe that natural disasters create jobs. The argument goes as follows: natural disasters kill and injure humans and animals, and destroy and damage property. After the disaster, this creates jobs in the area as rescue workers, medical specialists, funeral homes and construction crews repair the damage. In that sense, natural disasters create jobs and are a benefit to the economy.
- In your expert opinion as an economist, do natural disasters create jobs? Why or why not? Use the concept of the Shadow Wage in your answer.