This summer’s heat is on track to set new records across the globe, but extreme heat isn’t just dangerous for our bodies. Extreme heat also affects the economy, and the outcomes could last even longer than the heat. Here are three ways hot weather cripples the economy.
#1 The Labor Force Suffers: People are the most important part of the economy. When the weather grows hot, workers find it harder to be productive. They also are more likely to feel sick, drained, or tired. Workplace injuries increase as well. Low-income and hourly workers are even more likely to die due to the heat.
#2 Economic Growth Slows: Hot weather means slower economic growth. For every degree above normal a state experiences, the economy loses up to .25% of its productivity.
#3 Stock Markets Lose Value: When extreme heat causes emergencies or leads to natural disasters, stocks lose value. Researchers are examining why stocks seem to be undervalued and why small businesses lose value in extreme heat, but they don’t know exactly why this happens.
The weather is predicted to continue to break heat records, but it’s important to keep cool and to cool down fears as extreme heat continues.