Sandy cost the US $50bn, could have been averted for $15bn

Prevention is better than cure.

The FT's Jason Abbruzzese has posted the Moody's Analytics estimates of the economic damage of Hurricane Sandy. The firm puts the cost of lost output at $19.9bn, and the damages at a further $30bn:

Abbruzzese writes:

If the $50bn total turns out to be accurate, it will make Hurricane Sandy the fourth costliest US disaster behind Hurricane Katrina, the attacks of September 11, and Hurricane Andrew.

Putting a dollar amount on a disaster which has claimed nearly 100 lives in the US, and almost as many in the other countries throughout North America which have been hit, may seem distasteful, especially since the death toll is likely to continue rising. But that figure helps put in context stories like this, by Matthew Yglesias:

A 2009 seminar hosted at the Polytechnic Institute of New York University considered several options for major infrastructure upgrades to combat storm surges—a barrier at the south end of the Arthur Kill that divides Staten Island from New Jersey, an East River barrier to prevent surges up that narrow waterway, a barrier perpendicular to the Verrazano Narrows Bridge between Staten Island and Brooklyn, and most ambitiously a “Gateway Barrier System” stretching from Sandy Hook to the Rockaways. Engineers don’t believe it would be feasible for the Gateway system to entirely block storm surges, but it could weaken and deflect them—significantly reducing the flood risks to the entire New York Harbor…

It would, of course, be expensive. The estimates presented at the seminar suggest a ballpark figure of $15 billion. But even if that turns out to be a substantial underestimate, it’s a bargain compared to the cost of widespread flooding.

Compared to $50bn, that $15bn looks increasingly tempting.

Cars float in a flooded garage. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Michael Gove definitely didn't betray anyone, says Michael Gove

What's a disagreement among friends?

Michael Gove is certainly not a traitor and he thinks Theresa May is absolutely the best leader of the Conservative party.

That's according to the cast out Brexiteer, who told the BBC's World At One life on the back benches has given him the opportunity to reflect on his mistakes. 

He described Boris Johnson, his one-time Leave ally before he decided to run against him for leader, as "phenomenally talented". 

Asked whether he had betrayed Johnson with his surprise leadership bid, Gove protested: "I wouldn't say I stabbed him in the back."

Instead, "while I intially thought Boris was the right person to be Prime Minister", he later came to the conclusion "he wasn't the right person to be Prime Minister at that point".

As for campaigning against the then-PM David Cameron, he declared: "I absolutely reject the idea of betrayal." Instead, it was a "disagreement" among friends: "Disagreement among friends is always painful."

Gove, who up to July had been a government minister since 2010, also found time to praise the person in charge of hiring government ministers, Theresa May. 

He said: "With the benefit of hindsight and the opportunity to spend some time on the backbenches reflecting on some of the mistakes I've made and some of the judgements I've made, I actually think that Theresa is the right leader at the right time. 

"I think that someone who took the position she did during the referendum is very well placed both to unite the party and lead these negotiations effectively."

Gove, who told The Times he was shocked when Cameron resigned after the Brexit vote, had backed Johnson for leader.

However, at the last minute he announced his candidacy, and caused an infuriated Johnson to pull his own campaign. Gove received just 14 per cent of the vote in the final contest, compared to 60.5 per cent for May. 


Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.