Without any doubt, Hurricane Katrina is considered to be one of the most destructive hurricanes that ever hit the United States during the last 100 years. It brought huge damage, disaster and despair for the country, especially for New Orleans, where the death toll was the highest. The main reason why this disaster happened can be amplified by the bad-running governmental policy. To counterbalance it, during the Clinton recovery period the USA considerably improved the economic sphere and domestic market.
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It is generally true that Hurricane Katrina significantly impaired the economic system of the USA. According to the professor Bernard Weinstein from University of North Texas, the effect of Katrina has reached 250 billion dollars loss (Brookings Institute, 2011). Furthermore, Hurricane Katrina struck 19 % of oil production in the United States. Due to that damage, the cost of oil grew to 3 dollars for a barrel, and the value for gas reached 5 dollars for a gallon. Moreover, Hurricane Katrina had an impact on the labor market. In June 2006, the unemployment level had reduced to 92900, comparing to the year 2005 when the employment total was 105300. Additionally, after Katrina hit the city, the amount of tourists abruptly decreased in no time. Before Katrina, the tourism industry had a profit of 9,6 billion dollars and just after it – 2,6 million dollars. Finally, Hurricane Katrina influenced environmental contamination, including multiple oil splits, water pollution, flooded buildings, and lots of others.
It is worth mentioning that the impact of Hurricane Katrina on the USA would not be so devastating if the Bush administration took the practical measures in time. The scientists repeatedly point out the defects of bad protection of New Orleans. The main cause why this hurricane relentlessly struck New Orleans is due to the fact that the federal government and the Army Corps of Engineering did not adequately plan and account the possible losses in case of the occurrence of the catastrophic hurricane. The Corps made a protection of New Orleans against a category 3 storm. However, Hurricane Katrina hit the Mississippi coast as a category 4 storm.
To counterbalance inadequate Bush government, the Clinton recovery plan improved the economy of the USA. From 1992 to 2000, Clinton signed out: Communications Assistance to Law Enforcement Act, Anti-terrorism Act, Effective Death Penalty Act, and the Communications Assistance for Law Enforcement Act that increased the life-standards of American citizens. Moreover, scholars distinguish this period as the most vital period in the economic reestablishment of the USA in post-war history. According to the statistics, the deficit was less than 2% GDP, and 3.8% annual index of growth of GDP was totally reduced (Durden, 2012).
Furthermore, Bill Clinton reduced the military spending and rate of the deficit. Additionally, the Clinton recovery is characterized by the support for free trade and the removal of controls imposed by governments on the operation of markets. In this field, Clinton administration paid attention to two major aims of deregulation: electricity and telecommunication. Moreover, Clinton supported domestic and global business sectors by creating an “infrastructure bank” that will provide Americans with “insource” workplaces rather than “outsource”.
All in all, Hurricane Katrina and the Clinton recovery have different impacts on the development of the American society. The effects of Katrina can still be seen in New Orleans. However, it is slowly, but surely rehabilitating. The city is still recovering, and officials need to establish new evacuation policies in order to prevent possible disasters. During the Clinton recovery, the US economic policy and life standards were significantly improved.