How can a prolonged drought can negatively impact the states' economy and its individual citizens?

Answer 1

A prolonged drought affects the states economy and its citizens in a number of ways, firstly look at the question it has 2 parts: states economy- the main concern that the states economy has is that, because farming and aguirculture are adversely affected, ( they cant grow crops to sell or feed there animals ) they do not produce what they would normally produce eg crops for sale or animals for slaughter or breeding ect, this means that the government dose not receive the tax on the sale of these crops or animals.

this of course has a negative effect because the government then cannot spend that money on local infastructure ( hospitals, roads parks schools ect.)

and because the farmers and growers usually hire people to help( contractors- like people who plough there fields or cut there wheat or fix there fences ) and local suppliers ( seed suppliers, tractor sales, farm equipment ect) these business also suffer from a decline in revenue that in turn effects the government (taxes)

the 2nd part - its citizens are affected because all the jobs that i have been describing overtime diminishes as farmers and growers stop spending. this leads to unemployment - another cost to the government through unemployment benefit's ect.

then the social problems that occur with families that don't have the money that they used to have when they had jobs (not been able to pay the mortgage) or other payments they might have to pay( car payments, power bills, kids school fees the list goes on ) can lead to families breaking up and mental health problems and even crime. so there is alot to think about when one event occurs it can have a negative effect for a lot of people and orginizations