Are destructive tornadoes good for local economies?

Not really. However much they put in contractors’ pockets there are others who are displaced and probably out of work. And they put a strain on resources.

They are restoring a community back to the way it was. There is no forward progress from the residents’ point of view.

Death destruction and ruining lives is not good.

Some people have no insurance to repair their house or even bury a family member.

I get where your coming from. (But my answer is still “no”.)

Let’s ignore deaths and heartache in this example although those costs are huge.

Now let’s say 50 houses worth $200,000 and 5 buildings worth $2 million each were destroyed with an estimated value of $20 million. Once rebuilt they are new and meet all current code regulations.
Now let’s imagine the structures were not destroyed but instead were simply resided, insulated, and brought up to current code rules. That might cost $2 million.
We end up at the same point but spend a lot less.
So where did the money go? The $18 million difference ended up like a make work program for contractors and workers that was paid by insurance companies and any government help – all of which is paid ultimately by citizens. More resources are consumed. More trees are cut. More trash is generated and we still end up in the same place.
It would be no different than building an $18 million bridge to nowhere – except skateboarders would have a great place to enjoy.

My home and barn are about 70 years old. They are located near woods that were planted about the same time. Two years ago a massive 2 ft diameter Linden tree fell on my barn and crushed it and some of the things that were inside. Insurance covered some of the loss saying things like. “The xyz is 60 years old so that is depreciated to abc of its value.” That included shelves, lights electrical service, floor, items inside, etc
The barn is finally rebuilt but I am still paying for a storage container because I have not finished getting blown in insulation to seal it. That can’t be done until the temperature is above 55F and that will be another month or so.
This caused me a lot of heartache and I only lost a barn with barn stuff inside. I can’t image how bad it would be to lose a house and loved ones.

No the damage is so huge that it coasts millions of dollars for repair damage.

@KRD – but those millions of dollars go to builders, contractors, truckers, painters, bricklayers, and so on and so forth. Those people are earning money and paying taxes, and putting money back into the local economy.

@elbanditoroso – only certain people are earning $. The victims and their insurance are out $$$.