ISU Economist: Harvey Will Ripple Across Economy

An ISU economist says Hurricane Harvey's effect on the petroleum industry will ripple throughout the U.S. economy. Dave Swenson says oil companies on the Texas gulf coast produce more than gasoline companies need to deliver their products quickly, they also make a wide range of other materials americans use daily, including plastics. Swenson says the effects of the 2011 tsunami that struck Japan is a global example of what could happen in Texas, pointing out the resulting manufacturing shutdown disrupted economies in several other countries. Economists say Harvey's immediate short-term economic effects include rising energy prices and a spike in unemployment claims. It could be the most expensive natural disaster in US history, with losses exceeding $100 billion dollars.