際際滷

際際滷Share a Scribd company logo

10 January 2008--New Orleans' Artificial Inflation

E
EconReport

New Orleans is experiencing artificial inflation in housing prices that is preventing many residents from returning after Hurricane Katrina. Rent for a house has increased from $500 to $1500 per month due to a perceived scarcity of available homes. This artificial inflation has allowed wealthy individuals to buy up properties while making it difficult for less wealthy former residents to reestablish themselves. Rebuilding efforts have been slow because billions of dollars in federal funds went directly to contractors like Halliburton, without requirements to expedite reconstruction.

1 of 1
Download to read offline
Report Completed: 01/10/2008 In the Name of Allah, the Beneficent the Merciful Topic: New Orleans' Artificial Inflation New Orleans is in peril. Why? How is it that the housing market all over the US is going down? Prices going down? Yet, New Orleans housing prices are skyrocketing? Before Hurricane Katrina, you could rent a house for $500 a month. After Hurricane Katrina, its about $1500 a month. Its called artificial inflation. This is when prices are raised up in a micro-economy due to a sense of scarcity. True. Land is scarce in New Orleans. However, due to the scarcity of homes, home prices, land value, and rental property prices are skyrocketing to phenomenal heights! The cost of living has also went up. This explains why there is little effort to rebuild New Orleans. It allows those that are rich to buy up those properties, or live there, while disallowing those who are not so rich to come back and re-establish themselves back in their hometown. Now billions of dollars have been sent to New Orleans in order to rebuild. Why is the rebuilding process so slow? Thats because those billions went straight to the contractors hands and not the local governments, where the contractors would have to abide by the municipal, or city regulations and mandates in order to receive those funds. In other words, those contractors received free money from the federal government with no obligation to expedite, or speed up, the rebuilding process. The biggest contractor in New Orleans being-- Thats right, you guessed it Halliburton. Thats so happens to be the biggest contractor in Iraq, and yall see how fast Iraq is being rebuilt.

More Related Content

10 January 2008--New Orleans' Artificial Inflation

  • 1. Report Completed: 01/10/2008 In the Name of Allah, the Beneficent the Merciful Topic: New Orleans' Artificial Inflation New Orleans is in peril. Why? How is it that the housing market all over the US is going down? Prices going down? Yet, New Orleans housing prices are skyrocketing? Before Hurricane Katrina, you could rent a house for $500 a month. After Hurricane Katrina, its about $1500 a month. Its called artificial inflation. This is when prices are raised up in a micro-economy due to a sense of scarcity. True. Land is scarce in New Orleans. However, due to the scarcity of homes, home prices, land value, and rental property prices are skyrocketing to phenomenal heights! The cost of living has also went up. This explains why there is little effort to rebuild New Orleans. It allows those that are rich to buy up those properties, or live there, while disallowing those who are not so rich to come back and re-establish themselves back in their hometown. Now billions of dollars have been sent to New Orleans in order to rebuild. Why is the rebuilding process so slow? Thats because those billions went straight to the contractors hands and not the local governments, where the contractors would have to abide by the municipal, or city regulations and mandates in order to receive those funds. In other words, those contractors received free money from the federal government with no obligation to expedite, or speed up, the rebuilding process. The biggest contractor in New Orleans being-- Thats right, you guessed it Halliburton. Thats so happens to be the biggest contractor in Iraq, and yall see how fast Iraq is being rebuilt.