Heat Waves Start To Damage the U.S. Economy.
What happens when a period of searing heat occurs around the world, and specifically in America? Heatwaves gave a partial answer. “Extreme heat depresses economic activity by restricting work and disrupting transport. Economists at Dutch bank ING said canceled events and closed schools “brought back memories of the pandemic lockdowns.” However, this is a tiny part of the real problem. Huge parts of the economy literally stop. And heat-related health problems fill emergency rooms to overflowing.
Today, there is no better long-term example than Phoenix, where temperatures exceed 100°F for more than 100 days a year. And, during at least 20 of those, the temperature is over 110 degrees. Outdoor work ends. This includes construction, which is essential to the local GDP. Despite the heat, Phoenix is one of the fastest-growing MSAs in the United States.
Phoenix emergency rooms. Grist reports that “Emergency room doctors in Phoenix are on the front lines of this challenge. This summer, physicians in Arizona have been inundated with patients suffering from heat-related illnesses, but they’ve also been seeing higher volumes of patients with chronic diseases exacerbated by heat.
The other major economic damage in Phoenix is to people who live at or below the poverty line. Some have to choose between the increased electricity bills from using air conditioning and the cost of food. Whatever help the city gives comes from its tax base.
Economists have already started to do the math. As large cities, including those in Texas and Las Vegas, are hit by Phoenix-like weather, local GDP is affected as well. While the effect may be less than 1% today, the number of widespread heat events is expected to increase, according to economists.
Now that heat waves are likely to be part of the landscape of East Coast cities, including Washington, Philadelphia, New York, and Boston, the economic impacts are becoming national. New York is America’s largest city by population. Philadelphia is ranked 7th.
Increasing heat across the US is uneven by year. However, two facts are certain. The world has faced some of its hottest years in history over the last five. Heat domes can cover areas that house over 100 million people.
The GDP effects spread from medical to constitutional to transportation, and hit the tax base of local economies.
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