History teaches that natural disasters, despite the painful aftermath of suffering they bring with them, leave no visible marks on the country's macroeconomic performance. However devastating fires, earthquakes, hurricanes, tornadoes or floods are, they are still local events that impact more on a micro than macro level. The earthquake-tidal wave that struck Japan was an exception, both in terms of the scale of the disaster and because, in a production structure that invented the just-in-time system, even minimal disruptions in the supply chains have lasting repercussions and can bring an entire industry. Furthermore, the consequences of the damage to nuclear reactors have led to blackouts and brownouts, as well as fears and uncertainties that have dulled the desire to spend. That said, even disasters lead to recovery and both the need for reconstruction and the physiological rebounds in production after supply chain disruptions will lead to a clear leap forward in economic activity. Toyota has already announced that it will hire 3-4 thousand temporary workers to recover the interrupted production, and from July to October the factories will march in forced stages. And similar initiatives have been announced by Nissan and Honda.
http://news.yahoo.com/s/ap/20110621/ap_on_bi_ge/as_japan_toyota
