Economic Effect of 9/11

1193 Words3 Pages

War is not a cheap man’s game. At the core of every nation sits an economy comprised of varying wealth and resources. A nation’s prosperity is dependent on its economic fortitude. In a constant state of fluctuation, economic prosperity is often fleeting, with a single event capable of causing economic turmoil for decades to come. The terrorist attacks of September 11, 2001 acted as a catalyst for economic change in the United States. The attacks presented isolated economic desolation, but the growing concern for security and the war on terror provided the greatest economic impact for the United States and the world. The attacks of 9/11 resulted in history’s longest stock market shut down since the 1930s. The New York Stock Exchange remained closed for six days after the attacks. Furthermore, Davis (2011) reports that upon reopening, the New York Stock Exchange fell almost seven hundred points, the biggest one day loss in history. Additionally, Jackson (2008) reports a 14% decline in the Dow Jones, a loss the Dow still felt almost a year later. But, it was American Airlines and United Airlines that experienced the greatest loss. Following the reopening of the stock market, American experienced a 39% decline and United experienced a 42% decline (Davis, 2011). However in face of discouraging numbers, Jackson (2008) reports that the U.S. markets rebounded second only to Japan, showing the great economic resilience of the U.S. While the stock markets present a bleak outlook immediately following the attacks, the financial loss is far from reassuring. The immediate financial repercussions of the terrorist attacks were astronomical. Makinen (2002) reports airlines received a $15 billion federal aid package. Additionally, insurance ... ... middle of paper ... ...CRS Report for Congress. Retrieved from http://digital.library.unt.edu/ark:/67531/metacrs7725/ National Priorities Project. (2011). U.S. security spending since 9/11. Retrieved from http://nationalpriorities.org/analysis/2011/us-security-spending-since-911/ Seidenstat, Paul. (2004). Terrorism, Airport Security, and the Private Sector. Review Of Policy Research, 21(3), 275-291.Retrieved from http://onlinelibrary.wiley.com.mutex.gmu.edu/doi/10.1111/j.1541- 1338.2004.00075.x/pdf Shah, Sabir. (2013). US wars in Afghanistan, Iraq to cost $6 trillion. Global Research. Retrieved from http://www.globalresearch.ca/us-wars-in-afghanistan-iraq-to-cost- 6-trillion/5350789 World Economic Outlook. (2001). How has September 11 influenced the global economy? International Monetary Fund. Retrieved from http://www.imf.org/external/pubs/ft/weo/2001/03/pdf/chapter2.pdf

Show More
Related

  • Essay On 9/11 Conspiracy Theory

    638 Words  | 2 Pages

    For starters a few days before the attack on 9/11, the airlines stocks did go up. Which means the supply and demand was greater. America was making more money, which is good. The airlines that stocks markets went up, were the airlines that were hijacked which than lead to them going bankrupt. Gabi Logan was saying on USA today “ Despite this government-funded measure, several prominent American airlines declared bankruptcy not long after the 9/11 attacks.” Due to bankruptcy more than just money was

    Read More

  • 9/11 Informative Speech

    1371 Words  | 3 Pages

    Host: On September the 11th 2001, the notorious terror organisation known as Al-Qaeda struck at the very heart of the United States. The death count was approximately 3,000; a nation was left in panic. To this day, counterterrorism experts and historians alike regard the event surrounding 9/11 as a turning point in US foreign relations. Outraged and fearful of radical terrorism from the middle-east, President Bush declared that in 2001 that it was a matter of freedoms; that “our very freedom has come under attack”. In his eyes, America was simply targeted because of its democratic and western values (CNN News, 2001). In the 14 years following this pivotal declaration, an aggressive, pre-emptive approach to terrorism replaced the traditional

    Read More

  • Impact of 9/11 on the Aviation Industry

    1193 Words  | 3 Pages

    When the attacks of September 11th occurred, the federal government had to completely close down some airports in the US. This created a negative effect on the industry as it was a shock to their entire organization. Planes in the US and around the world were canceled due to this attack as well. Planes were not flying anywhere, as the plan was to prevent any other attack. Each plane that was cancelled had to be paid by the airline company directly. According to the International Air Transport Association there was a drastic change in the amount of flights between the date before and after the event. Around 37,600 less flights flew the day after the attack had occurred. The number of flights dramatically decreased in those three days; in addition every...

    Read More

  • Economic and Societal Impact of 9/11 Attacks

    724 Words  | 2 Pages

    The terrorist attacks of September 11, 2001 were horrific and traumatic events that affected not only the United States but had global ramifications as well. The events of that day produced immediate and long term effects on numerous aspects of society. The human tragedy in the loss of human life was immeasurable. The societal effects of 9/11 continue to be present even today as the war against terror continues. It is difficult to measure the societal impacts, but the economic cost of the attacks, have been and continue to be measured.

    Read More

  • The Bush Dectrine: The Three Perspectives Of The Bush Doctrine

    1049 Words  | 3 Pages

    ... of the United States, the attacks gave severe impact. The stock market did not open after September 11 until September 17; the effect causing a historical drop in United States’ stock price. The United States losses resulted in $1.4 trillion in valuation for the week.

    Read More

  • The Impact of the World Trade Center Attacks on New York City's Economy

    756 Words  | 2 Pages

    A study by the New York City Partnership and the Chamber of Commerce estimates that New York City's economy will sustain a gross loss of about $83 billion and lose 57,000 jobs over three years as a result of the World Trade Center attacks.

    Read More

  • The Day The World Cried

    875 Words  | 2 Pages

    a series of deliberate and deadly terrorist acts. The victims were in airplanes or in their offices – secretaries, businessman and women, military and federal workers. Moms and dads, friends and neighbors. Thousands of lives were suddenly ended by, despicable acts of terror. The pictures of airplanes flying into buildings fires burning, huge structures collapsing have filled us with disbelief, terrible sadness and a quiet unyielding anger.

    Read More

  • 9/11

    1138 Words  | 3 Pages

    Every day millions of people put their trust in those around them. When the passengers boarded the flights on September 11th, 2001, they put their trust in the planes, the pilots, and the other passengers. On this devastating day about 3,000 people lost their lives. One of America’s only terrorist attacks on US soil, the attacks on 9/11 affected the United States by killing many people in Manhattan and Washington D.C., sending its economy into deficit, and sparking a war in Afghanistan.

    Read More

  • 9/11 Impact On Society

    784 Words  | 2 Pages

    Although it may seem that the crashes themselves were the most devastating and terrifying part of the attacks, the fall of the towers caused the most damage and heartbreak all over the country. The first tower to collapse was the South Tower (Inside 9/11: War on America). It came crashing down at 9:59 a.m., almost fifty-six minutes after the initial impact, silencing the city. When the towers were built, they were built to withstand extreme conditions. The towers contained a series of fireproofing. However, the impact of the crash caused the fireproofing to blow off. As a result, the steel structure of the building softened from the extreme heat and flames from the jet fuels. The South Tower stood for fifty-six minutes after the initial impact (Johnson). Soon after the fall of the South Tower, the Pentagon also faced a destructive tragedy. At 10:10 a.m. the part of the Pentagon struck by the airplane also collapsed (Inside 9/11: War on America). Although

    Read More

  • The Impact of September 11, 2001

    1225 Words  | 3 Pages

    On September 11, 2001, terrorists savagely attacked the United States of American. Thousands of individuals lost their lives as two airplanes crashed into the two World Trade Center 1`buildings and the Pentagon. This brutal act shook the world. This terrorists’ attack has changed many aspects of people’s lives worldwide. It not only affected the US but everyone around the world. During the aftermath, we learned that we lost one of our native virgin islanders. US Army, Staff Sargent Maudlyn A. White, 38, born on St. Croix died on active duty in the Pentagon. She was described as a quiet person who was independent. Not only were the Virgin Islands affected by her death, but also the financial decline the islands started to experience. After September 11, the Caribbean was dramatically impacted; security levels rose, tourism levels dropped, and people became more hesitant about travelling.

    Read More

  • How Has 9/11 Affected America

    1501 Words  | 4 Pages

    The tragedy of 9/11 affected Americans with an everlasting effect. It open American people’s eyes to the world of terrorism causing an array of emotional, behavioral and ethical changes. Understanding the history of terrorism will help us determine the why behind such acts. Is Terrorism political? Is it a religious cause? Is it to cause confusion amongst a nation so that they don’t trust their government and seek out something or someone else for it? As (Nigdy, & Ritchie, 2018) have identified, terrorism has its roots from first century AD. A terrorist Jewish organization broken down into two groups, the Sicarii and the Zealots. The Sicarii who targeted other Jews that were collaborating with the Roman government and the Zealots who targeted

    Read More

  • The Effects of September 11 on US Economy

    714 Words  | 2 Pages

    Almost half of the states faced budget shortfalls for 2001 or 2002, which caused most peoples lives to change after the attacks. Even the U.S. economy effectively took a vacation for the rest of September. It fell greatly and caused multibillion dollar losses to many companies and industries around the nation. Some of these companies and industry were a great part in the turning wheel of the U.S. economy. (Sivy, n.pg.)

    Read More

  • Defense Spending

    962 Words  | 2 Pages

    When the terrorist attacks occurred on 9/11 it did more than just affect the comfort level of American citizens. It had an all around impact on how this country will be run for years to come. The one economic impact that I will concentrate on is that the attacks, arguably, but directly effected the U.S. GDP (Gross Domestic Product) and how the national budget will be handled from that day forward.

    Read More

  • The Negative Impacts Of Airport Security On The September 11, 2001

    929 Words  | 2 Pages

    Atef (2005) observes that even before the terror attack of September 11, 2001, among the government’s main agendas was that of aviation security. However, he goes on to explain that this agenda was heightened after the 9/11 terror attack. Among the areas that experienced much improvement is that of enhanced flight training. An increase on the insurance premiums on the flight schools had a number of negative impacts including bankruptcy. This, therefore, heightened the need for the aviation industry to identify some of the ways of coping with the high cost of

    Read More

  • Terrorism's Cascading Impact on Economy and Society

    602 Words  | 2 Pages

    In recent years, there has been a growing concern that terrorism focused on critical economic infrastructure, could produce cascading social and economic effects over broad scales. (Comment Draft National Infrastructure Protection Plan, Base Plan, prepared for the U.S. Department of Homeland Security. March 2006. Page 1). There are obvious consequences to a terrorist attack: post-traumatic stress disorder, not to mention the heightened sense of fear felt by the entire nation. And there could also be a fiscal impact, including negative trends in economic growth and increased government spending on security and defense, as well as lost productivity—all of this on top of the immediate costs incurred through rescue efforts and infrastructure damage.

    Read More

More about Economic Effect of 9/11

Open Document