The outpouring of care and support for victims of Hurricane Katrina has really been amazing, and quite frankly, truly inspiring.
Most people have probably heard of various problem areas and are aware of the difficulties associated with the relief and humanitarian efforts related to the recent unprecedented Gulf Coast disaster. In circumstances such as these, there are always villains; but the number of heroes, in my estimation, far outweighs those who seek to take advantage of the situation.
The news is filled with stories about individuals and groups who have shown tremendous compassion to others they did not know personally. While they might have been strangers to them in one sense, they were nonetheless fellow Americans, and we were quick to reach out. Our nation continues to provide a helping hand, and many parts of the country have opened their doors to accommodate the displaced.
Perhaps no area has answered the call for help to a greater extent than Texas. Across the state, Gulf Coast evacuees are being provided with essentials such as shelter, food, and clothing. Medical, social, and veterans’ services, as well as emotional support, are being offered with unfailing generosity. In several communities, employment opportunities are being made available to those with particular skills.
Schools are enrolling children who have had to leave their homes, colleges are considering ways to enable students to continue their higher education pursuits, and churches and synagogues are welcoming those who wish to worship.
I was born in Texas and have lived here my entire life. I have always known it to be a great state—in so many areas. Seeing the responses that our government, community, business leaders, and countless other Texans have made to those in need during this difficult time has justly confirmed it. The support and contributions from lemonade stands to corporate boardrooms continue to swell.
As an economist, I often look at situations from a unique perspective. Over the past few days, I have considered the impact that the temporary migration of nearly a quarter of a million people might have on the Lone Star State.
Involved in my calculations were factors such as the number of evacuees, a reasonable distribution of their average length of their residence here, the educational programs provided to children and college students, the medical and social services offered to those with special needs, as well as other relevant data. From my examination of the situation, it appears that the minimum incremental cost for those coming to Texas will be approximately $250 million in the very short run, an amount which is over and above the higher gasoline prices and other things everyone else pays as well. This amount, though large, is only about a little over $10 per capita. Even if the total ends up being twice that amount or more, it is something that can well be absorbed. (Now that the federal government has authorized full reimbursement for extended housing allowances and other expenses, the total expenditures flowing through the state over time will be much higher.)
In the case of Texas, the gains from increased port activity and the energy sector will insulate Texans from some of the worst effects. While we are predicting a drop of 0.7% in US economic growth over the next few months (related to where it would have been otherwise), the corresponding drop in Texas is projected at only 0.1%-0.2%.
The money to support our hospitality, of course, will come from numerous sources including the federal government as the primary mechanism (Texas has been declared eligible for disaster relief funds), as well as state and local governments, charitable organizations, private corporations, and individual donors engaging in unselfish acts that will never find their way into economic statistics. The cost of helping our neighbors return to a more normal life should not be a financial burden.
Whatever the ultimate cost of Katrina to our state, we are capable of providing it. Texas has always answered the call for assistance. I’m pleased we are faithfully continuing this tradition and helping make life livable again for our neighbors to the east. It makes me really proud to be a Texan.