Climate Change Could Cause Economic Losses

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According to an annual report released by the Biden administration this week, climate change is causing significant economic issues in the United States. The report’s authors, White House Council of Economic Advisers, assert that assumptions that affluent nations such as the U.S. would be able to manage the dangers of global warming safely and that the risks were straightforward have been proven wrong. Currently, a “wide range of risks” is affecting the “well-being of American communities,” particularly low-income and minority neighborhoods according to Zoya Teirstein of

Biden Administration Report

The report warns that heat, flooding, wildfires, and zoonotic diseases threaten public health and healthcare systems. Trillions of dollars’ worth of infrastructure, including bridges, roads, and homes, are at risk of flooding, which poses substantial challenges for both the federal mortgage lenders and America’s insurance industry. Moreover, the costs of responding to disasters such as hurricanes and droughts have reached hundreds of billions of dollars in recent years, putting a strain on local, state, and federal governments.

As a result of these economic risks, which disproportionately affect some groups, the government must reevaluate its public spending practices from the national to the local level.

While the Economic Report of the President does not contain specific policy proposals or serve as a binding plan, it is still a noteworthy document. It provides insights into how President Joe Biden and his team of economists are considering current major issues. Furthermore, the report gives hints about the legislation that Biden will likely encourage his party to draft and pass in 2023, as well as the executive actions he may take.

In addition to its political implications, the report also highlights the alarming direction in which climate change is leading the country. Its publication coincided with the release of a major United Nations report that warns of the world’s risk of significantly exceeding its climate targets and causing irreversible harm to future generations.

According to Rob Moore, a senior policy analyst at the Natural Resources Defense Council, the report presents a realistic overview of the challenges we face and the actions the federal government can take to tackle the unavoidable impacts of climate change.

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