NYC ECONOMY LOST
$200M FROM FIZZLED STORM, TRANSIT SHUTDOWN.
VERY FEW SMALL BUSINESSES CARRY BUSINESS INTERRUPTION INSURANCE
NEW YORK (AP) - New York City lost an estimated $200 million
in economic activity in the fizzled snowstorm and decision to shut down the
transit system - a loss that wasn't crippling overall but had the biggest
impact on small businesses and hourly workers.
Consumers who would have otherwise bought cars or made other
major purchases will likely do so a day or two later, said Adam Kamins, an
economist with Moody's Analytics, which came up with the preliminary loss
estimate. He noted that many employees forced to stay home Tuesday were able to
telecommute.
"For example, a holiday where people aren't working
would have a greater impact on the economic output than this storm,"
Kamins said.
Evan Gold, senior vice president for Planalytics, a firm
that advises companies on weather issues, estimated the economic losses for the
total Northeast, including New York, Philadelphia and Boston, at $500 million.
"Now that does sound like a lot of money, but when you
think about last year, where we had a polar vortex, several weeks of that, more
population centers impacted as well as above-normal snowfall, last year's
overall economic impact is pegged at anywhere from $15 billion to $50
billion," he said. "So in comparison, this is actually a relatively
small event."
In New York, small businesses and hourly workers who rely on
tips, such as taxi drivers and restaurant workers, were keenly affected by the
loss of work time.
Lenice Ferguson, a baker at Insomnia Cookies said the shop
is usually open until about 3 a.m. making deliveries. The bakery closed at
about 10 p.m. Monday.
"It's a big deal, because I only work three nights out
of the week," the 26-year-old said. "My check is going to be short,
and I have bills that I have to pay."
Subways, rail lines, bridges and tunnels were all closed
Monday night. Residents were told to stay off the streets after 11 p.m. or face
fines. Transportation reopened Tuesday morning after it was clear the storm was
a bust in New York City, with most areas getting about 8 inches instead of the
predicted 2 feet.
Fausto Cabrera opened his Upper West Side barber shot
Tuesday morning but wasn't expecting many customers.
"There was nobody here yesterday and today, just
look," he said, pointing to six empty barber chairs. "All I can do is
wait."
Mayor Bill de Blasio said economic loss was much less than
it would have been had the storm hit in full force, and that taking precautions
helped the city get back online faster.
Moody's economist Kamins said that for the Northeast
overall, the storm would have done about $16 billion in damage had it hit full
force. Instead, the impact will likely reach just $1.25 billion.
"I will always err on the side of safety and
caution," de Blasio said Tuesday. "We had consistently been getting
reports talking about two feet or more of snow. To me it was a no-brainer, we
had to take precautions to keep people safe."
Shaon Chowdhury, a manager of Arthur Cab Leasing Corp., in
Queens, said he didn't have a problem with the city's actions even though he
lost about $60,000 in revenue and expenses.
"If they did get 28 inches it would be a problem, so
shutting down is a good idea," he said. "What happens if we did get
28 inches? It would have been hell."
New York City's 24,000 restaurants probably lost millions in
revenue in total, said Chris Hickey, regional director of New York City for the
New York State Restaurant Association.
For the first time in the decade since it first opened a
block north of Times Square, the TSQ brasserie deserted at mid-afternoon
Monday. Business was down about 70 percent.
"Never in my life was it like this - empty," said
manager Mohi Hassan.