Sometimes economic and political tensions go beyond the boiling point and lead to full-scale riots. Riots with clear economic proximate causes have fortunately become very rare in the United States, though they were much more common in the early days of industrialization and unionization and the protests that accompanied the WTO conference in Seattle in 1999 were an uncomfortable reminder. (If you've been a victim, your losses may be deductible. Find out how. See Deducting Disaster: Casualty And Theft Losses.)
Though Canada and North America are fortunate to be in a position where there are multiple nonviolent means of expressing outrage and dissatisfaction, the rest of the world is not so lucky. Economic troubles in Greece led to actual rioting earlier in 2010 and there were worries that Ireland would see similar problems when the government rolled out its austerity measures. Moreover, economic protests in much of Europe often take a violent turn (many of the strikes in France, for instance) and with many countries still straining under large debt and deficits, the risk of future disturbances cannot be ruled out.
It is fair to wonder then what the economic impact of rioting is.
Damage to Property and the Economy
It is not hard to imagine that rioting directly damages property values and economic activity. When people smash windows, steal things, or set buildings and property on fire, that all has direct economic costs. Moreover, if people are rioting they are not working, and even those who are not involved in the disturbances are affected - they cannot get to work, shop or otherwise carry on with business as usual. Some studies have suggested that the LA riots in 1992 ultimately cost the city nearly $4 billion in taxable sales and over $125 million in direct sales tax revenue - that in addition to $1 billion in property damage and the loss of many lives.
For the full piece:
http://financialedge.investopedia.com/financial-edge/1210/How-Riots-Influence-An-Economy.aspx
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