1/31/25
The Economic Impact of the California Wildfire
Author: Arav Sachdeva
Editor: David Sun
The tragic and unfortunate wildfire is currently ongoing and impacting areas near the Eaton and Palisades region in California. Harsh winds started the fire, which, combined with dry weather, led to serious fires that became widespread quickly.
What does this tragic event mean for the economy of the United States of America?
According to Economists at Morgan Stanley, this wildfire will lead to slower job growth and temporarily boost inflation. The damages are about $250 billion throughout houses, cars, businesses, etc. Furthermore, the economy will face a huge struggle in the real estate market, due to America having a lot of real estate value in California. More than 1,200 properties have been burned and destroyed due to this devastating wildfire.
The wildfires will have an inflationary impact because more people will be in demand for things like construction materials and cars. Although this impact is huge for the future of the USA, experts say that this is a minor impact at a national level for America and other countries.
What about the impact on wildlife and nature?
The impact on wildlife and nature near these areas will be huge because a lot of the species like deer, owls, lizards, etc. will be evicted due to the destruction of their habitat and home. Trump, as the new future president, will have to help preserve nature in the affected areas and pour even more funds on top of the recovery of the homes and industrialized places.