Hurricane Ike has been a disaster for Texas (although thankfully Austin escaped essentially unscathed), and it has had an interesting side effect on me.
One of the treats of being in Europe is the ability to buy Cuban cigars, particularly Cohibas, which are, in my view, the best cigars in the world.
Ike hit Cuba hard — and apparently destroyed a substantial amount of the cigar-wrapper crop. The price of this input into my favorite Cuban cigar will increase, causing the supply of Cohibas to shift leftward for a while and the price to rise in the short run. That increase will be temporary because Cuba will replant the crop.
What would be permanent would be the rightward shift in demand when the U.S. finally resumes trade relations with Cuba. Legalizing Cuban cigars will surely raise price.
While that would be unfortunate for me when I’m in Europe, paying a higher price in the U.S. would still be better for me than the infinite price at which Cohibas now sell at home under the trade ban!