Major Flooding in U.S. Midwest and the Effects on the Economy

If you think that the major flooding in the U.S. Midwest won't have any effect on your lifestyle, think again. The flooding going on currently will most certainly have long term effects on the country's economy on the whole. From truckers to homeowners to railroad and construction work, the floods of 2008 will leave a lingering aftertaste long after the waters recede.

Midwest floods will affect the cost of goods sold:

With major thoroughfares closed, truckers are having to reroute hundreds of miles around small towns now under water. To add insult to water-logged injury, gas prices jumped twenty-two cents per gallon over night Friday in Iowa. With higher gas cost and added mileage on all deliveries, these costs will surely be passed on to consumers across the nation.

Even trains are being rerouted due to the deluge of water overflowing from rivers and creeks. Many train tracks will need major reconstruction causing possible tax increases to home owners already at their very brink.

Midwest floods will affect produce prices across the nation:

As the major producer of corn, beans and many other produce items for the U.S., the flooding in Iowa will force the cost of food to go up even farther. With smaller crop sizes due to many fields being completely underwater, if farmers were able to plant at all, the results may be devastating. The family farms in Iowa were already in trouble, having to compete with major corporations for prime farmland and being priced out of many markets. The flood waters only add to the woes of the already suffering farmers. Even farmers markets will have a more scarce offering going into the summer months.

Flooding will also affect the cost of corn used for Ethanol in the production of gasoline. This will, of course, increase the cost of gas products made here in the U.S.

Midwest floods will affect homeowners' ability to spend:

Many homeowners are losing all of their possessions to the flood waters of 2008 in Iowa. Tom Cameron, a lifelong resident of Des Moines, purchased his home in midtown Des Moines almost 10 years ago in a non-flood area. After spending over $15,000 on a new sewer system and drains, he felt secure enough to invest another $10,000 in a basement remodel. To his shock and horror, he awoke Friday morning to water rushing in from every corner of the basement, ruining everything. "There's really nothing you can do." Tom said, "Just control what you can by moving floor items up, but you really don't have any control. You're helpless. You have to turn to a recovery plan and figure out what your next steps are. Now it's just clean up and dry out."

Mary and Phil Wares, residents on the south side of Des Moines (also not a flood zone), had water in their basement above the pilot lights of both water heater and furnace. With 2 sump pumps operating on full power for several days, they were still unable to keep the flood waters out. Said Mary of the mess, " I just hope we can dry them out enough to still use them. We can't afford to replace both a water heater and furnace, and I hate cold showers before work!"

Midwest floods will affect the cost of construction:

Many constructions projects have come to a complete halt during the Iowa floods due to standing water and mud. To catch up and complete projects on time, the companies will be required to pay workers overtime. These costs will be undoubted passed on in the next project. Not to mention the lack of a paycheck to those construction workers during lay-offs due to high waters. The overtime pay will help, but many of the workers are also facing devastating losses in their own homes.

There is no way to tell yet how much the Midwest floods of 2008 will cost U.S. citizens, since the rain is still coming down and rivers have yet to crest. One thing is for certain at this time, Iowans and Midwesterners in general have banded together to help their neighbors in any way possible. Sandbagging stations have been set up in low lying areas around Des Moines and other small towns, and there is thankfully no shortage of volunteers to help in the effort.

When 4-Mile Creek left its banks on Saturday, the call went out for volunteers in the sandbagging effort to save homes and trailers in a known lower income area. Within the hour the sandbag station was inundated with people offering to help.

Hopefully things won't get as bad as 1993, when Iowa suffered the "100 year flood" and lost its water treatment plant leaving 200,000 citizens without fresh drinking or bathing water. Even if we get another record flood, Iowans will not be kept down. We are strong, we will persevere, we are Iowans. Its still a great place to live!