economy
Newsletter
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Heavier flooding puts many small businesses at risk
The increasing frequency and severity of floods across the US are pushing small businesses to the brink, with many one disaster away from closure.
In short:
- Root Hill Cafe in Brooklyn faces frequent flood damage, losing about $3,500 in sales and employee pay for each day closed.
- Small businesses nationwide struggle with high flood insurance costs and insufficient coverage, as seen in Vermont's $300 million flood damage last summer.
- Experts urge infrastructure upgrades and better flood risk transparency to support small businesses.
Key quote:
“We are constantly checking the weather... If we see that there’s a hurricane in Florida, it’s like, oh my God, please let it not come here.”
— Alejandra Palma, co-owner of Root Hill Cafe
Why this matters:
Flooding threatens the survival of small businesses, which employ nearly half of US workers and contribute significantly to the economy. Communities are calling for greater support from both state and federal governments, emphasizing the need for improved flood defenses, better urban planning, and more accessible disaster relief funds. Advocates argue that proactive measures, such as investing in green infrastructure and restoring natural floodplains, could mitigate future risks.
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Biden announces $1.7 billion to support US EV factories
The Biden administration is providing $1.7 billion to retool 11 auto factories for electric vehicle production, aiming to secure jobs and support union labor.
In short:
- The Energy Department's funding aims to prevent the closure of unionized auto plants and save over 15,000 jobs.
- This initiative is part of Biden’s strategy to boost EV production before the November election, countering potential policy reversals if Trump wins.
- The largest allocation, $500 million, goes to General Motors in Lansing, Michigan, to shift from internal combustion engines to EVs.
Key quote:
“Building a clean energy economy can and should be a win-win for union autoworkers and automakers. This investment will create thousands of good-paying, union manufacturing jobs and retain even more — from Lansing, Michigan to Fort Valley, Georgia — by helping auto companies retool, reboot and rehire in the same factories and communities.”
— Joe Biden, President of the United States
Why this matters:
This funding supports the transition to electric vehicles, crucial for reducing greenhouse gas emissions. It also aims to secure jobs in an evolving auto industry, promoting economic stability in key states.
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Unions and climate groups call for transition plan for UK North Sea oil workers
Amid the decline of North Sea oil, unions and climate groups demand a clear and funded transition plan to protect jobs and communities.
Matthew Taylor, Helena Horton and Jillian Ambrose report for The Guardian.
In short:
- The North Sea oil industry, a key economic driver for decades, faces terminal decline as oil production drops and companies pull out.
- Last year, the basin had its lowest production year since it was established as an oil basin in the 1970s.
- Unions and climate groups, once adversaries, now unite to ensure a fair transition to low-carbon jobs for the 60,000 workers affected.
- Political parties are divided on how to handle the transition, with Labour promising no job losses and Conservatives pushing for continued exploration.
Key quote:
“We simply can’t let these workers be the coalminers of this generation, with all the devastation to lives and communities that would entail.”
— Joe Rollin, senior organiser at Unite, which represents oil and gas workers.
Why this matters:
The decline of North Sea oil threatens the livelihoods of thousands of workers. Climate groups see the potential for a significant reduction in carbon emissions and a chance to pivot to sustainable energy sources. However, they are also acutely aware that this shift needs to be just and equitable, ensuring that those who have powered the economy for so long are not left behind.
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Newsletter
Michigan aids workers in clean energy shift
To support the transition to clean energy, Michigan's Department of Labor and Economic Opportunity has established an office to help workers move from fossil fuel jobs to renewable energy roles.
In short:
- Michigan aims for 100% clean energy, transitioning auto production from gas to electric vehicles.
- The new Community and Worker Economic Transition Office, funded federally, aids manufacturers and workers in adapting to renewable energy jobs.
- Collaboration with federal programs enhances workforce training and resource allocation for economic transitions.
Key quote:
“We know that we’re going to have clean energy transitions that are gonna take us years and decades to fully employ. So what we can do is we can create these opportunities to identify the communities and workers that are most vulnerable to change, and then deliver opportunities to the businesses in those communities so that they don’t ever face that economic harm.”
— Jonathan Smith, senior chief deputy director of the Michigan Department of Labor and Economic Opportunity
Why this matters:
The transition to clean energy can prevent economic harm in communities reliant on fossil fuels by creating new jobs and training opportunities. Proactive strategies help ensure that workers and businesses can adapt to and benefit from these changes.
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California receives federal funds to train climate-resilient workforce
California has been awarded $60 million in federal funding to develop a climate-ready workforce across the state, including a $9.5 million investment for Long Beach City College.
In short:
- The U.S. Department of Commerce and NOAA allocated funds to nine states and territories, with California among them, to enhance job training in climate resilience.
- Long Beach City College will create the Los Angeles County Climate Ready Employment Council to focus on training for water and solar sector jobs.
- The initiative aims to prepare a skilled workforce to tackle climate impacts like sea level rise and flooding.
Key quote:
"Climate change accelerates the need for a new generation of skilled workers who can help communities address a wide range of climate impacts."
— Gina Raimondo, U.S. Secretary of Commerce
Why this matters:
As climate change intensifies, there is a growing need for skilled workers to help communities adapt and build resilience against its impacts. Training programs are essential for creating jobs and supporting economic stability while addressing environmental challenges.
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Flooding costs US economy hundreds of billions annually
Increasingly severe flooding is costing the U.S. economy between $179.8 and $496 billion each year, according to new data from the Senate Joint Economic Committee.
In short:
- Annual flood damages are estimated to cost between $179.8 billion and $496 billion, more than 1% of the 2023 GDP.
- Lawmakers are addressing increased flood risks from climate change, which causes more frequent and intense precipitation and rising sea levels.
- Significant infrastructure upgrades, estimated at $70 billion to $345 billion, are necessary for flood protection.
Key quote:
"We find around $100 billion in annualized damages to properties due to flood risk. Then when you add on infrastructure damage, costs of repair, lost wages/etc., the total damages to the economy from flooding easily move into the hundreds of billions of dollars."
— Jeremy Porter, head of climate implications at First Street Foundation
Why this matters:
Beyond the immediate financial impact, severe flooding poses significant health risks. Contaminated water supplies, mold growth in homes, and the displacement of communities contribute to a myriad of health problems. Vulnerable populations, including the elderly and those with preexisting health conditions, are especially at risk during and after flood events.
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Climate change impacts insurance availability in high-risk areas
Increasing natural disasters driven by climate change are making insurance unaffordable or unavailable for many homeowners, especially in states like California, Florida, and Louisiana.
In short:
- Homeowners in high-risk areas struggle to find affordable insurance as companies withdraw or hike premiums.
- States offer insurers more flexibility, but risk becoming the insurers of last resort.
- Rising disaster costs and population growth in risky areas exacerbate the problem.
Key quote:
“Insurance companies have basically become our land-use officials.”
— Doug Heller, director of insurance with the Consumer Federation of America
Why this matters:
Without affordable insurance, homeowners may be forced to relocate, which could lead to broader economic and social impacts. The increasing financial strain on homeowners is just one of many symptoms of a planet under stress. For families, this isn't just about rising costs—it's about the stability and security of their homes and lives.
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