Economic Consequences of the Mississippi Flood

The flooding along the Mississippi river has already taken a toll on the area, and will continue to for some time to come.  Putting a dollar amount on the personal loss and emotional trauma that the people effected by this disaster is impossible.  But economists are already starting to quote estimates of property damage so far, and projections of further economic loss.  Michael J. Hicks, Ph.D. of Ball State University and Mark L. Burton of the University of Tennessee, have written a paper entitled, “Preliminary Flood Damage Estimates for Memphis, Tennessee” in which they estimate damages of $753 million just in Memphis.

Meanwhile, the seafood industry, already reeling from the BP oil spill, is facing yet another catastrophe.   As reported by Christine Hauser in New York Times earlier this week, “oyster beds have been flushed with fresh water from the river after spillways were opened.”

The Mississippi river is the backbone of the local economy, and with the flooding slowing down and at times stopping shipments of goods, especially perishable crops, along the river, even more money is being lost.  More disturbing than crops not getting to market, acres of farmland have been flooded and may not be able to be replanted this year.  That would not only lead to a devestating loss to the local agricultural economy, but could mean higher prices for food throughout the country.