The argument has been made that 9/11 was a major cause of the economic recession we went through a few years ago. That is, the financial and jobs impact was enough to tank the stock market for a few months. This is in opposition to the argument that it merely exacerbated the existing deficit spending and tax cuts.
It strikes me that with a natural disaster up to five times the scale of 9/11, we now have a good test of whether a disaster will tank the economy for a year or more.
What should we look for in evaluating the effects of Katrina on the economy?