Hurricanes cause many countries millions of dollars every year. The impacts of hurricanes destroy infrastructure, business transactions and the economy. Countries that are victims of tornado experience sudden drop in their economy and foreign investments. Many countries spend millions of dollars trying to clean up the damage left by the tornado. Tornados halts businesses, affects agriculture and people. Many governments spend money trying to find immediate shelter, food and water for the areas affected by the tornado. According to the article, the effects of tornados may take decades for cities and nations to recover fully. Tornados affect the personal income of people and increases taxes. Personal incomes decrease because people become unemployed and the government increase taxes to help providing immediate need for the victims as well as rebuilding infrastructure. Tornados affect the GDP of the nation and foreign investments. Foreign investments decrease because investors do not want to risk their wealth in countries that are threatened by tornados. According to researchers in the article, the costs of tornadoes have reached a staggering $9.7 trillion according to projections. The research also shows that storms that have hit many countries tend to slow down economic progress. Many countries lose their natural resources and investments and the likelihood of a country hit by a storm to recover to its usually economy might take decades.
The Post Office could serve financial purposes to their customers. With the many forms of electronic communications, people do not have significant need of the post office. The Post Office revenues have dropped over the past few years. Banks are now controlling the financial market and they have sets their rates are high. The Post Office is owned by the government, and if financial services are added to it can increase annual revenues. Many people will use financial services in the post office because it will cheaper than banks. According to the article, one in four Americans do not have bank accounts, and bringing financial services to the Post Office will increase the number of people with bank accounts. According to the article, Walmart stores offer financial services in thousand stores. People who shop at Walmart have the convenience of paying their bills and transferring money. A similar situation could happen to the Post Office if it offers financial services. If the post office offered financial services, people will now have bank accounts and banks will be face competition and be forced to decrease their interest rates on saving and credit cards. This will also lower the cost of financial services and financial products making it affordable for everyone. The post office is facing a big loss and they need to offer other services to increase their revenues. According to the article, if the post office should add financial services they will be making an estimate $8.9 billion annually. Offering financial services will help reduce the losses that the Postal services have accrued over the years. There are some people who will not find it helpful if the post office offers financial services. Some people are comfortable with banks. Considering the poor revenues made by the post office, offering financial services will help increase revenues in the future.
Works Cited
Palmer, Kimberly. "What Happens If the Post Office Is Your Bank." Yahoo Finance. Yahoo, 13 Aug. 2014. Web. 15 Aug. 2014. <http://finance.yahoo.com/news/happens-post-office-bank-130000899.html>.
Rosen, Rebecca. "How Much Do Hurricanes Hurt the Economy?." The Atlantic. Atlantic Media Company, 5 Aug. 2014. Web. 15 Aug. 2014. <http://www.theatlantic.com/business/archive/2014/08/how-much-do-hurricanes-hurt-the-economy/375594/>.
