effect http://michiganradio.org en Winter storm packs economic punch http://michiganradio.org/post/winter-storm-packs-economic-punch <p>Ok, so we all know that <a href="http://michiganradionews.org/post/winter-storm-brings-more-foot-snow-parts-michigan">this week's winter storm</a> caused <a href="http://michiganradionews.org/post/largest-snowfall-winter-storm-reported-south-haven">copious amounts of snow and ice</a> to blanket much of the state. And, of course, we couldn't forget the school closings and sore backs (hey, shoveling a foot of snow out of a driveway is strenuous!).</p><p>But, what about the actual financial impact of a <a href="http://michiganradionews.org/post/winter-storm-pictures">huge winter storm</a>? Just how much money did all that snow cost the state? Hard to quantify? It sure would seem like it. But, one firm, <a href="http://www.ihsglobalinsight.com/">IHS Global Insight</a>, has decided to go ahead and try to figure the economics out.</p><p>In a report released this week titled, <a href="http://www.highways.org/pdfs/economic-costs-of-snowstorms.pdf">The Economic Costs of Disruption from a Snowstorm</a>, IHS said the storm had a $251 million a day economic impact in Michigan. The study took into account both direct (think loss of income because of a missed day of work) and indirect effects (such as lost sales in the local economy) of the storm into account when figuring out the numbers.</p><p>Aside from the actual economic data, IHS also reached three conclusions about the financial impact of winter storms, and I quote:</p><ol><li>Among all economic classes, snow-related shutdowns harm hourly workers the worst, accounting for almost two thirds of direct economic losses.</li><li>The indirect economic impacts of snow-related shutdowns, including loss of retail sales and income and sales tax revenues, roughly double the initial economic impact.</li><li>The economic impact of snow-related closures far-exceeds the cost of timely snow removal. Although states and localities may be hesitant to expand significant upfront resources in the short-term, the long-term payoff more than justifies the expense. Fri, 04 Feb 2011 12:51:08 +0000 Zoe Clark 1166 at http://michiganradio.org Winter storm packs economic punch