Economic Problem

There are different seasons in a year. During each of these seasons,people’s business decisions, buying and investment decisionschange. Such changes also result in economy change. In the followingargument, the essay aims at discussing how the economy changes as theseason does.

Published Literature

In “5 Ways the Weather Affects the Economy”, Amelia Xu (2015)notes that extreme weather results in profound impacts on national,state as well as local economies. The author mentions examples ofseason changes like the drought in California, snowfall in North Eastand flooding in Texas in 2015. She notes that these changes cause theeconomy to change in either a positive or negative way. The articlediscusses five ways through which the economy changes with changes inthe season.

One is lost productivity. During the stormy season it becomesimpossible for most employees to report to work. The outcome isreduced productivity, which resonates to a decline in revenue allthrough the stormy season. In addition, consumer activity declinesduring harsh weather conditions. Few people are likely to shop whenit is raining heavily hence, resulting in losses in earnings andsales. Xu (2015) uses the illustration of Planalytics, whichexperienced a loss of $500 million because of a decline in salesduring the snowstorm season.

Second, changes in seasons can cause increased sales. When there isextreme weather, consumers are likely to become apprehensive. As aresponse, people resort to filling their gas tanks, buying in bulkimportant products like nonperishable food, batteries, water andflashlights. Companies such as insurance companies are likely tobenefit from more people taking insurance covers to protect theirhomes from the effects of flooding. Such massive buying temporarycauses a rise in the economy.

Third, season changes encourage innovation, which has a positiveimpact on the economy. Due to the extreme winter season, companieshave come up with innovative products to protect people, houses andcars from harm during extreme snow, rainfall or in the event ofhurricanes or tornadoes. Such products include snow chains, which areplaced in the tires of cars, snow blowers for quickly removing snowand hurricane shutters, which are doors capable of withstandingintense wind pressure. Such innovations reduces economic losses,because without them money is lost in dealing with the damage.

Four, dealing with the damage of season changes causes changes tothe local economies. For instance, state governments have to setaside money that is used in removing snow. Also, heavy rainfallresults in costs needed to deal with physical harm as well as lostrevenue through reduced productivity. The local economies of regionsaffected by changes in seasons are negatively affected a more moneythan anticipated may be spent in dealing with the aftermath of forinstance, an extreme storm.

Last, season changes like drought may boost the economy. Duringdrought, state and local governments create jobs for individuals whowork as aid workers. The individuals provide aid to those affected bydrought, storms or other harsh weather conditions. The creation ofemployment resonates to an increase in employment rates, which is aboost to the economy. Although it may cost government money to paynew employees, the money is recovered through the employees payingtaxes.


Based on the published literature, season changes may cause either anegative or positive change to the economy. When the season ischaracterized by extreme snowing or rainfall, the economy experiencesboth negative and positive changes. The positive changes aretemporary and happen when consumers resort to bulk buying inpreparation for the storm. Bulk buying means that more money is spendand most organizations record increases in sales and interest. Suchincreases in turn boost the economy.

However, the negative changes to the economy seem to outweigh thepositive. First, there is an immediate decline in productivity.Employees are incapable of going to their offices when there is heavyrainfall. Hence, companies experience losses, which resonate toeconomic declines. At the same time, companies like insurancecompanies also experience losses in terms of covering for damagescaused by heavy snow, rainfall or hurricanes. People that had insuredtheir property, always claim insurance after an extreme season. Themore the people claiming insurance, the more losses to insurancecompanies, and in the event causes economic declines.

Economic losses are incurred by local, state and nationalgovernments. The wealth of states and cities declines during harshseasons. For instance, during drought, governments have to sparemoney to provide aid for those affected. The same case applies duringthe snow season, when money is spent removing snow. Extreme rainfallmay cause floods, which necessitates evacuations, which are costly togovernments.


In conclusion, the economy changes as the season does. It can eitherappreciate or depreciate depending on the season. In most cases thereis an economic decline due to harsh seasons, like extreme rainfall,drought and snow, which cause reduced productivity, decline in salesand losses in dealing with the damages caused.


Xu, A. (2015). 5 ways the weather affects the economy. SmartAsset. Retrieved from: