Bloomberg is reporting on more economic fall out from the oil spill. The tourism costs, now at $22.7 billion, exceed the $20 billion put into escrow. 300,000 jobs will be lost.
Subcommittee Chairman Bobby Rush, an Illinois Democrat, said various studies estimate that the oil spill has put 300,000 jobs at risk, or 15 percent of the total in the region.
Roger Dow, president and chief executive officer of the U.S. Travel Association in Washington, gave the estimate in written testimony for a hearing today by the House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection on the impact of the spill on tourism. The figure comes from Oxford Economics, a U.K. consulting firm, and was based on 25 previous disasters, including oil spills, hurricanes and terrorist attacks.
The estimated cost exceeds the $20 billion BP has agreed to put into an escrow account to pay spill victims. Tourism generates $94 billion in revenues for Louisiana, Mississippi, Alabama and Florida, Dow said.
“This large and vital sector of the Gulf Coast economy is in jeopardy,” Dow said.
According to the BBC, BP has set aside, including the $20 billion escrow account, $32.2 billion for the gulf oil disaster clean up.
When will corporations realize costs are not just some number on a bean counter's spreadsheet? Cutting costs and corners to that extent can destroy an entire company. This is ignoring the tragedy, the human, life suffering, the destruction to the environment. By corporate profits alone, allowing these glorified hatchet men to squeeze costs results in just these types of events.
Some not so easily seen, such as losing one's industrial base to China as an example.
The story gets better. Market Watch is reporting BP plans to take a $10 billion dollar tax credit against U.S. corporate taxes.
Believe me, Uncle Sam pays one way or another. Our corporate tax laws guarantee it!