The catastrophic fires that occurred in Los Angeles are having lasting effects on the livelihood of the people living in the city today. These dry and windy wildfires have escalated in frequency and have become a near annual event in California, leading to the loss of lives and property. In this regard, a study has been made regarding the impact of the tragic fires on the economy of Los Angeles in depth and in detail.
Destruction of Property and Housing
One of the first outcomes of the economic toll of the Los Angeles fires is the burning down of houses and property. Citizens have been left without homes to live in after entire neighborhoods have turned into ashes.
Most of the houses that were affected by these fires have reported being insured but not enough to cover these expenses. This leaves families with reconstructing these homes with out of pocket expenses which puts them in a tough spot.
The median price to building a home in cities such as Los Angeles is already at an elevated amount compared to national standards so this adds additional stress on the victims. Most of the people claiming they have been able to rebuild have to deal with years worth of expenses on top of the payments made for temporary accommodation which goes unattended.
Disruptions to Business Activities and Unemployment
Local economies have suffered job cuts because the fires have adversely affected many businesses. A substantial number of proprietary firms which constitutes a large section of the local economy.
Healthcare Treatment Cost
Another major unplanned cost due to the fires are the health care costs. Over time, health issues have increased among the people due to excessive smoke and air pollution. Hospital and clinic admissions have also increased, so the existing trouble in health systems has increased even more.
For patients, it means spending much more money on medical treatment and in some cases even lifelong respiratory therapy. Most of the affected people are underinsured, and the bills are too high for them to afford.
Problems Related to Insurance
Despite being there to safeguard people, it is evident that majority of residents from Los Angeles have faced issues in getting compensated after the disaster. Either the insurance companies straight up refuse the claims, or delay payouts until the policyholder’s grief subsides, while blaming inadequate coverage of the policy.
With regards to renters, their position is even worse, as most renter’s insurance does not cover wild fires. This means lots of people are left without any kind of financial coverage.
Increased Costs Related to Living
The fires that took place earlier on have led to an increase in the cost of living in a very unpredicted way. Given the housing market in Los Angeles, the prices have once again skyrocketed due to the increased demand for properties that remain unscathed.
The supply of these housing is limited, and many lower and medium class families have been forced out due to the increased competition. Moreover, utility prices have also increased due to energy suppliers spending on infrastructure and attempts to repair previous fire damage.
Psychological Impacts & Loss of Efficiency
These fires are devastating on both a mental and economical level. A vast majority of residents have reported having anxiety and depression, something that impairs their chances of finding work or even holding work.
When the productivity level of communities take a dip at the same time, the expenses on mental aid increase, the burden of economics becomes unbearable for the families affected by these fires.
What the Community and Government Can Do
To combat these emerging issues, many relief programs have been founded by citizens, while many California government organizations have also offered their aid.
These local nonprofit organisations aid victims by providing them with basic necessities like shelter, food, clothing, and monetary resources to assist with rebuilding. But not all things are great and the actions taken do not help tackle all problems.
Long-Term Consequences
The economic consequences of the fires are not limited to damage suffered by individual residents. The city’s tax base has also suffered as property values in the fire-damaged parts of the city continues to fall. This has further deprived the government of tax revenue and, at the same time, impaired its ability to provide services to the community.
Moreover, the fire activity in Los Angeles is of a further concern as it raises worries about the economy of the city. Businesses and individuals may be forced to move to less fire prone regions and in the process, weaken the economy of the region further.
Conclusion
The fires in Los Angeles have highlighted the sensitivity of the residents to a natural catastrophe and the broad economic implications of it. From losing property and jobs to paying higher medical costs and grappling with new insurance policies, the impacts of the fires reached all sectors of the city’s economy.
These calls for the attention of the local, state, and national authorities, and the public as a whole. It will be necessary for the city of Los Angeles to invest into fire protection systems, inexpensive housing, and strong social welfare services in order to strengthen the economy of the city and its ability to withstand shocks.
