US Heat Wave: Economic Damage of Extreme Weather Projected To Be at $100 Billion

As the US heat wave continues, Phoenix, Arizona, recently experienced an extraordinary heat wave, with temperatures soaring to a scorching 119 degrees Fahrenheit, per CNN Business.

The relentless and prolonged nature of this extreme heat has posed significant challenges for local businesses, including Lyn Thomas, the owner of Zydeco's Louisiana Kitchen Food Truck, and Zydeco's 2 Geaux walk-up window.

For Thomas, who prides herself on serving authentic Cajun and Creole dishes passed down through generations, the oppressive heat makes it difficult and unsafe to operate her food truck and wait for customers.

As a result, she has made the practical decision to shift her focus toward building up a catering business during this challenging time.

The desert heat in Phoenix has been arriving earlier, intensifying, and lingering longer, with temperatures consistently surpassing 110 degrees for 23 days.

This prolonged extreme heat, even at night, with temperatures remaining in the triple digits, creates a miserable environment for businesses and residents alike.

Beyond the obvious discomfort for millions of Americans, this extreme weather is taking a toll on businesses, driving up costs, and putting pressure on the overall economy.

US Heat Wave Could Cost the Country $100 Billion, Study Shows

A dangerous and unprecedented heatwave continues to grip several regions of the United States, with severity in the Southwest, Great Plains, and Central Great Basin, according to FOX Weather.

The oppressive heat is expected to persist into the start of the new workweek, leading to challenging conditions for residents and businesses in these areas.

While some relief is anticipated in the low desert regions and Great Plains, the heat and humidity will likely expand to other locations.

The East Coast also braces for sweltering temperatures and high humidity as the week progresses, with little relief even during nighttime hours.

More than 46 million Americans, stretching from California to Florida, are currently under heat alerts, with Excessive Heat Warnings and heat advisories in effect across the West and southern tier of the country.

The situation has improved slightly from its peak, with over 110 million people under heat alerts on Thursday.

Meanwhile, the US heat wave impact on the economy is yet to be fully assessed, but studies have shown that extreme heat could cost the United States an estimated $100 billion annually, primarily due to productivity losses.

Moody's Analytics estimates that chronic physical risk from heat stress could reduce global GDP by up to 17.6% by 2100.

Various industries, including agriculture and construction, bear the brunt of productivity losses, but no sector remains immune to the heatwave's effects.

Even employees working in air-conditioned environments may face challenges outside of work, leading to disruptions in sleep and subsequent exhaustion, impacting their performance.

US Heat Wave Impact on GDP

Excessive heat has long been a concern for outdoor-specific industries, requiring careful management to safeguard workers' well-being, AOL noted.

However, the intensifying and extreme nature of recent heat events poses an increasing challenge for businesses and the US economy.

Joshua Graff Zivin, an economist and professor at the University of California San Diego, who has extensively researched the impact of heat on workers, highlights the urgency of addressing this issue.

The severity of the current heat waves leaves little time for proactive measures, causing significant disruptions to work schedules and output in various industries.

As workers face heightened risks and health concerns in extreme heat, they may be forced to reduce their working hours, resulting in decreased productivity and output.

Graff Zivin raises the possibility that this ongoing US heatwave could be unprecedented in modern US history, potentially leading to a small dip in quarterly GDP, if not the annual figure.

This article is owned by Latin Post.

Written by: Bert Hoover

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