NEW YORK (CBSNewYork) – Superstorm Sandy could wind up benefiting the New Jersey economy. That’s the expert opinion from the Bloustein School of Public Policy and Planning at Rutgers University.
“This report tries to use our econometric model that we keep here at the Bloustein School at Rutgers of the state’s economy to try and parse out, and it’s a very complicated analysis, the damages done by Sandy to the economy and then the offsetting economic boost that the spending on the repair, restoration, will create,” Professor Joseph Seneca told WCBS 880’s Wayne Cabot.
“But in no way are we saying, Wayne, that, you know the storm was good for New Jersey. It was deadly and destructive and damaging and created a lot of pain and suffering,” he said. “So, this is a macroeconomic analysis.”
How much aid will we need from the federal government to give New Jersey a shot at being a net positive in the Sandy recovery?
“In our analysis, we’ve estimated that about $25 billion over the next several years including the aid that’s already been allocated by FEMA and that aid can come also from private insurance as well,” Seneca said.
What are the businesses and professions that will benefit?
“The construction industry – broadly defined, both heavy construction for the infrastructure, the roads, the utilities, and bridges and water systems. Clearly all those businesses associated with the restoration of homes,” he said.
Will this be a middle class boon?
“It will help the construction industry – employment there, income there, eventually sales tax revenues, a little bit of a boost to income tax revenues, again, if the repair and reconstruction expenditures on the scale that are needed are, in fact, realized and made over the next several years,” said Seneca.