Did The Blizzard Kill The Economy?

While the majority of the nation’s travel was interrupted by a massive blizzard over the weekend, we’re only just beginning to discover the affect the winter storm has had on the most important thing in the world – money. Early reports indicate that national retailers have lost at least $1 billion in sales because of the blizzard. According to ShopperTrak, which does exactly what the name implies, stores throughout the northeast witnessed a decline of approximately 6.1% in sales, according to sales numbers from the previous year, while stores throughout the U.S. experienced a total decline of 10.1%. Not feeling the snowy pain was my new store, Shovels R Us.

Aside from shopping, the massive snow storm also caused big problems for city, county and state budgets. Snow removal services in the state of Virginia cost upwards of $250 million, while the budget for such a situation is only $94 million. To make up for it, the state has had to cut down on grass-cutting and tree-trimming services, which also reduces work hours for state employees. Cities are feeling the biggest burn as their budgets are far smaller than the states, leaving many of them without any recourse other than increasing debt. My suggestion? Cash for gold.

While this news may hardly concern anyone who spent the weekend living in an airport, there is a great deal of finger-pointing going on as to why they were stuck living their own version of The Terminal. Airlines may have been canceling flights before the blizzard was even a problem because of the new fines that penalize them for planes that linger on tarmacs for excessive periods. A number of airlines have been hit by the $27,500 per person fine this year, as it states that any plane that sits on the tarmac for more than 3 hours will be fined. I have to be honest – you keep me in a metal tube on a tarmac for three hours with smelly fat people and screaming babies, I’m going to push that plane back to the terminal myself.