Despite any counterargument, the weather can have an effect on local, state, and national economies. It can effect productivity, sales, innovation, business decisions, etc. Depending on the circumstance, these effects can be positive or negative. Some may argue that the weather plays no significant role in the economy. They claim that an April shower or a January snowstorm can’t affect a consumer’s ability to buy products or a business’ abilities to deliver a sales pitch or meet the demand of their consumers. While their opinion is understandable, there are studies and facts that backup the ideology that the four seasons have an effect on the economy.
On January 28,2016, a snowstorm hit northeast United States and over $500 million worth of sales were eliminated. Drastic and extreme weather events can create a significant decline in revenue and sales throughout the duration of the weather, or even over a longer period of time afterwards. Not to mention, besides sales and revenue, inclement weather can drive up heating and debris/snow removal costs. There is an upside; while heating and removal costs go up, the economy can still be boosted by resorts and weather specific sports like skiing or snowboarding. When the weather changes, depending on the severity and the circumstances, the economy adjusts. If there’s a snowstorm, certain industries like shopping lose revenue whereas industries that involve heating increase. The weather is much like the “groundhog” of the economy. It determines if revenue will be lost or gained depending on the inclement circumstances.
During a particularly dry spell, agriculture can be negatively affected whereas construction industries are positively affected because they can remain on schedule. A warm winter can have a negative effect the ice fishing industry while having a positive effect on shopping industry. The weather, depending on the circumstances, can play in the favor of some industries and at the disservice of others.
- Cowie, Wim. “The Four Seasons of One Economic Cycle.” www.dropdeadmoney.com. 12 July 2012
- Editor, Weather Guys. “How Does Weather Variability Affect Our Economy?”
www.wxguys.ssec.wisc.edu. 17 Jan. 2013 - Lewis, Jared. “To What Extent Does Seasonality Affect Business?”
www.smallbusiness.chron.com. 16 Jan. 2012. - Xu, Amelia. “5 Ways the Weather Affects the Economy.” www.smartasset.com. 28 Jan. 2016.