Riots in Context
And while it's nice to see the media using the Tulsa massacre to finally acknowledge what researchers have long known—that riots can have devastating, long-term consequences for a community—the economic damages of Tulsa do not compare to more recent riots. The riot of 100 years ago caused the modern equivalent of $200 million in damage, compared to $1.4 billion in the Rodney King riots and as much as $2 billion last summer.
That is Richard Hanania in Newsweek. More historical context on riot damage here.
For another point of comparison, consider that the immediate costs of riots are small compared to those caused by natural disasters each year. Hurricane Isaias alone caused an estimated $4.8 billion in damages in 2020. As with riots, hurricanes affect poor and disadvantaged groups the most.
Riots, natural disasters and taxes are a double negative for business and societal progress. Not only do they stop it from moving forward but push the needle backwards. I wonder if there are opportunity costs that can be calculated.
In many ways the rate of prosperity is a zero sum game.