As any New Orleans business owner can tell you, Hurricane Katrina is much worse than 9/11. But how so? Today, Daniel Goss writes on Slate.com that Katrina can drag down the entire U.S. economy in ways that 9/11 thankfully did not:
New Orleans "lies at the heavily trafficked intersection of the Old and New Economies...when the infrastructure of these networks gets damaged, it can't be replaced easily or cheaply."
"If New Orleans were pure Old Economy--if, for example, it simply grew wheat--its devastation would not cost that much, because other wheat and grain growers would replace it. If it were pure New Economy, like Wall Street, it could bounce back instantly, because its real assets (information and people) would not be irretrievably lost. But because it's right in the middle, the damage will be enormous."
Everyone may feel the after-effects of Katrina, small businesses not least among them.
For more small business information and resources on Katrina, click here.