--- title: Can Ferguson Recover? The Lasting Economic Impact of Violent Unrest description: The looting and destruction of businesses in Ferguson could have long-term effects. authors: - name: Susie Poppick url: https://money.com/author/susie-poppick/ at_money_since: 2013 articles: 117 covers: - Economy and Politics - Banking - Business - Career Advice - Credit - Credit Cards - Education - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Personal Finance - Retirement - Shopping - Taxes - Technology social: - https://x.com/susiepoppick former_staff: true published: '2014-11-25T17:14:00.000Z' modified: '2024-04-16T04:13:26.000Z' section: Economy and Politics tags: - darren wilson - economic recovery - Ferguson - la riots - looting - Michael Brown - rioting - riots - Small Business - unrest word_count: 434 canonical: https://money.com/ferguson-riots-recovery-economic-impact-unrest/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Flames illuminate the St. Louis Fish & Chicken Grill next door to where fire crews worked to douse a burning furniture store.](https://img.money.com/2014/11/141125_ff_fergusonrecover1.jpg?crop=0px%2C517px%2C5100px%2C2867px&quality=85) *Riots erupted moments after it was announced Ferguson police officer Darren Wilson will not face criminal charges in the fatal shooting of unarmed teenager Mike Brown. Several buildings were looted and burned.* A grand jury decision not to indict police officer Darren Wilson for the shooting of unarmed black teen Michael Brown has stoked anger in Ferguson, Mo., where peaceful protests have given way to looting and violence, virtually shutting down the city last night. "People don’t want to come into the area,” Jason Bryant, a local pastor, told [TIME](https://time.com/3598612/ferguson-grand-jury-decision-darren-wilson-michael-brown/). The events echo [those in August](http://www.washingtontimes.com/news/2014/aug/18/ferguson-businesses-struggle-amid-looting-violence/), when the shooting first caused long-standing tensions to erupt into violence, theft -- and shuttered storefronts. TIME [reported last night](https://time.com/3598612/ferguson-grand-jury-decision-darren-wilson-michael-brown/) that local retailers have seen sales slow by as much as 80%. While the loss of local business may seem trivial next to the potential for additional violence -- not to mention the civil rights and other legal issues at stake -- there is a danger that rioting could disrupt the lives and livelihoods of Ferguson residents for years to come. In the ten years after the 1992 Los Angeles riots, for example, the city lost nearly [$4 billion](http://usj.sagepub.com/content/41/13/2691.short) in taxable sales, according to research conducted by Victor Matheson of College of the Holy Cross and Robert Baade of Lake Forest College. "Social unrest can have a lasting negative impact on a local economy in a way that's much more persistent than even a natural disaster," says Matheson. "Though Hurricane Andrew caused more damage upfront, businesses were able to bounce back as soon as cleanup began. We didn't see that in Los Angeles." Matheson and Baade found that the steps toward recovery are relatively clear after natural disasters: Communities tend to join together to build shelters, clean up, and storm-proof structures against future events. After rioting, by contrast, it's much harder rebuild confidence and community trust among frightened business owners, or to convince new employers to move in. "It's not as simple to just stamp out violence and anger," Matheson says. And reluctance to rebuild is dangerous because it is self-perpetuating, he adds. Concerns about lasting damage to business-owner confidence similarly followed riots in [London in 2011](http://world.time.com/2011/08/12/after-the-riots-the-economic-cost-of-londons-mayhem/) (also triggered by a police [shooting](http://world.time.com/2014/01/08/police-shooting-that-sparked-british-riots-was-lawful-says-jury/)), and economic aftershocks are still felt [today](http://www.theguardian.com/uk-news/2014/jan/04/london-riots-damage-compensation-claims-unpaid), despite the commitment of more than [$116 million](http://www.bbc.com/news/uk-england-london-28793069) in riot-recovery funding. While there are no easy fixes that will keep Ferguson from suffering a similar fate, quelling anger is a first step. [Various experts](http://www.hks.harvard.edu/content/download/67474/1242706/version/1/file/Harvard_LAPD_Report.pdf) and [commentators](http://www.slate.com/articles/news_and_politics/politics/2014/08/ferguson_police_reform_how_the_justice_department_could_revamp_the_ferguson.html) have suggested policy changes that could help rebuild trust in the police department, including a consent decree like the one that eventually helped the LAPD improve relations with residents of L.A. No matter what path Ferguson takes, says Matheson, the sooner the violence ends, the faster the local economy can begin to heal. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/ferguson-riots-recovery-economic-impact-unrest/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Economy and Politics", "item": "https://money.com/economy-and-politics/" }, { "@type": "ListItem", "position": 3, "name": "Economy", "item": "https://money.com/economy/" }, { "@type": "ListItem", "position": 4, "name": "Can Ferguson Recover? 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