On September 11th, 2010 the United States will mark the 9th Anniversary of the worst terrorist attack in our nation's history. Over 3,000 Americans lost their lives that day and the United States, and the world, still are dealing the reprocussions of that attack.
Your task is to comment on September 11th from a perspective on what it has done to the United States economy. What are some of the economic issues directly, or indirectly, related to the attacks? Spend some time reflecting and researching your response. Your entry should be two-three paragraphs long and try to comment on your peers' blog entries as well.
Mr. Frese- Block 2 B/D
ReplyDeletePlease make sure to use only your first name, last name initial and Block 2B/D when you make your entries.
One economic issue relating to the 9/11 attacks is security. American goverment has had to increase there standards of security all over the nation. Now, in airports there is military presence and many more steps to letting people get on airplanes. For example, people of the middle eastern decent may be looked at differently or maybe pulled aside to make sure they are not planning anything suspicious or carrying on board any weapons. This much increase in military presence has cost the goverment alot of money.
ReplyDeleteWith this also comes into effect the rules on immigraion. American goverment may not let people into the country that have come from the middle east fearing they are part of a terrorist organization. The goverment has been put under alot of stress knowing that they cannot let another horrible attack happen again.
Another factor that comes into effect it the airport buissnes. Airports may be loosing money due to the number of people that are now afraid to fly and that will never fly again. This attack has damaged the reputation of the airports and is loosing them money. People may soon realize that security regulations have increased but some poeople will never bring themselves to fly again.
Scott R - 2 BD
Shauna B. -2-B/D
ReplyDeleteThe economy has taken a rather large toll due to the impacts that the attack of September 11th has had. Many ways of transportation in the city have taken a toll for the worse. People are now afraid to go to New York City at all. Simple day to day businesses that were doing well because of the amount of tourists are now declining miserably. The amount of money that is being taken in is slowly beginning to incline once more. It will however take a very long time for the overall profits of the markets to reach even as to what they should be.
The airport, as Scott said, has truly taken a major hit for the attack. People are not only afraid, but don't want to deal with the frustration of things either. It's the little things such as the cost of tickets and having to deal with all of the security stuff. There is such a long wait to get on that by the time you get on its as if it was not worth it any longer.
Lastly, people are hurt about the whole subject in general and therefore, increasing sales on things that have to do with the twin towers. The state has actually gained money from small items such as keychains, postcards, or even pens. This is probably the only benefit of the attack on our economy.
Shauna B. -2-B/D
Caitlyn S. 2-B/D
ReplyDeleteSince the 9/11 attacks, the economy has not been the same. It used to thrive day by day and people did not have the slightest worry about anything until 9 o'clock that morning. Since this debacle, the nations spending as increased dramatically.
Once the towers collapsed the amount of debris was everywhere. In-order for the clean-up to occur, the United States had to spend 22.7 billion dollars. This number is only based on the twin towers. There were also multiple building surrounding the towers that also had to fixed.
To ensure that not another terrorist attack occurred, the United states deployed a grand total of 294,355 troops from 2001-2008. By sending this many troops also increased the amount of military spending. At home, the amount of police officers and firefighters increased as well to keep the society under control. With many more jobs being offered, the more money the United States had to spend. As Shauna and Scott have said, security has gotten more strict and more costly since the attacks.
Hope T. - 3 BD
ReplyDeleteFollowing the September 11th terrorist attacks on the United States, sales in home and personal defense goods increased significantly as Americans prepared for the worst.
Sales of survival essentials like bottled water, non-perishable food items, first-aid kits, sanitation supplies, flashlights, blankets, and radios all increased as frightened Americans prepared for the possibility of another terrorist attack. Pricier emergency items, like bio-hazard suits, generators, and home security systems also an saw increases in demand.
Handgun and rifle sales also increased significantly following September 11th as Americans looked for further means to protect themselves in uncertain times. Top gun manufacturing companies, like Smith and Wesson, Sturm and Ruger, and Glock, reported sales increases in the months following 9/11. Consequently, ammunition sales also increased. Membership in gun clubs and rifle leagues increased as new gun owners sought out gun handling education and practice.
The increase in the sales of home and personal defense items, as well as the increase in gun ownership, following the September 11th terrorist attacks reflects the fear and uncertainty of the time period. Americans educated and readied themselves, preparing as best as possible for a seemingly frightening future.
Erik L. 3-B/D
ReplyDeleteThe terrorist attacks of September 11th, 2001, impacted the economy of the United States tremendously. The airline industry took one of the hardest hits, with share prices of airlines and airplane manufacturers falling greatly after the attacks. Many airlines were threatened with bankruptcy and tens of thousands of layoffs were announced in the week following 9/11 (wikipedia).
Small businesses were also affected, especially in areas around the World Trade Center. Almost 18,000 businesses were dislocated, disrupted, or destroyed by 9/11. Assistance was given to them through government programs and loans were given out through the Small Business Administration. These programs, however, have been plagued with problems (Gail Makinen).
As Hope mentioned before, there were certain industries that saw in increase in sales. A lot of money has been put towards national security since the terrorist attacks, and companies specializing in security have seen a boom in profits. The U.S. Department of Homeland Security has spent $28 billion over the 22 month period following 9/11. The security industry is expected to continue to grow.
Abby D 2AC.
ReplyDeleteSince September 11, 2010, there have been severe impacts on the United States economy.
Aside from the obvious effects such as clean-up, cost of equippment used at ground zero, and re-building of the freedom tower, there are several economic effects of the terrorist attacks.
For example, for precaution, there is more security in places such as airports, train stations, ports and national land marks. The increase in costs of these people's salaries, and the equippment used in security have impaced the economy.
Businesses throughout the country have also been affected by the attacks. For example, my boss owned a limo business that consited of almost daily trips to NYC for people going on business trips, or to the airport. After 9/11, the limo business declined greatly, because very few people would go to NYC, causing her to have to sell the limos and give up her business.
There has also been an impact on United Sates families due to the terrorist attacks. Many families lost 1 or both incomes that day, causing set backs in individual households.
Mr. Frese
ReplyDeleteI like how all of you provided personal insight and reflected on the question. Abby, your story about your boss really strikes home that a local business over 150 miles away from NYC could be impacted.
Jordyn W.- Block 2B/D
ReplyDeleteThe united states has always been a leading role in the economy because of how wealthy it is. One of the areas that was effected the most as a reslut of 9/11 was tourism. After the attacks the boarder of Canada became very strict. The tourism to new york city decreased as well.
Mayor of New York City, Rudolph Giuliani's first issue was to clean up the mess from the attack itself. After the attacks Mayor Giuliani wanted to start promoting tourism again and help New York City economy bounce back.
Mary H. Block 2B/D
ReplyDeleteSince the attacks of 9/11 the economy suffered a great deficit. Despite the clean-up and the rebuilding the attacks also impacted security and it also affected the family's who lost someone.
After 9/11 the level of security increased significantly. The United states put more security in airports, banks, important buildings, and in many more places. It used to be that you could get to the airport 10 minutes before your flight but now you have to get there an hour before hand in case security takes to long. With this need for more security the people had to pay. Taxes were raised to pay for the increased security making it hard for some people to live comfortably because they lost the money they might have relied on.
The terrorist attacks also affected the family's who had loved ones working in the twin towers on 9/11. Some family's could have lost a huge part of their income. children could have lost both of there parents or just one. Where one family could have been living in a nice house, not worrying about food or if they could support their kids are worrying about those things now and were highly affected by the attacks and the following war.
As said in the earlier comments security has gotten progressively more strict and a lot more costly. As for family's dealing with lose these people are probably still dealing with the effects of 9/11 because since then the economy has gotten worse.
Danielle B. 2AC
ReplyDeleteThe economy has obviously been impacted by the September 11 attacks. not only has security increased but also the airline industry is still suffering.After the 9/11 terrorist attacks the appeal of flying decreased. Many people were scared because nobody knew if those attacks would happen again.As a result, many airlines went bankrupt. A ton of people lost their jobs and their source of income. Since a lot of people were not flying the cost to fly sky rocketed.Also for obvious reasons airport security has been increased.This has also put a damper on traveling. Nobody wants to stand in line for a long time and wait for everything to be searched and looked thru. It also costs a lot of money to have so much security. Even nine years from now the airline industry is still suffering.
Rickie B. 2BD
ReplyDelete9/11 not only was one of the worst days for families lives, but it also really effected the economy of families and businesses.
Families were both heartbroken and put into a very big financial situation. A Mother could have been lost or a Father, and these people brought an income into a household. It may be hard to lose someone, and they may never get over it, but it hits a family hard with an economic stand point.
Airports suffered because no one wanted to fly, but small businesses that fed off of the Airport, whether it was driving people to an airport or transporting them home in a taxi or limo business. These small businesses lost a lot of customer because these customers are now afraid to fly.
This was a very rough time, not for just America's families and businesses, but it alos effected worldwide. Not gonna get into that, but all Americans can agree that this is the worst day in American history.
Abbi H 3BD
ReplyDelete9/11, one of the most traumatic events in United States history, had extensive negative effects on the economy of our country.
The effect of this act of terrorism has impacted all areas of the economy; small businesses were one of the most heavily impacted areas of the economy. After the attack in 2001, nearly 18,000 businesses were disrupted or destroyed. Many of these businesses had their bases in or near the World Trade Center, and were destroyed. While loans were given out to try to aid the businesses in re-growth, the damage was, for the most part, irreversible.
Along with the collapse of businesses came an increased rate of layoffs and unemployment. With businesses failing, hundreds of thousands of Americans lost their jobs. Without jobs, some family income were cut in half or even completely eliminated. With people becoming more conscious of their already scarce money, less money was being pumped into the economy, leading even more into the already serious recession.
Zachary Hays - Block 3BD
ReplyDeleteThe effect of the September 11th attacks upon the economy are secondary in nature, stemming from reactions to the attacks, and not the attack itself. Though it seems cruel to say, the number of those killed in the attack was not sufficient to have any great impact upon New York City's total productivity, never mind the United States'.
The attacks planted the seeds of paranoia in the minds of many Americans, who had lived in relative luxury for quite some time. As others have said, many began investing in various defense measures, and ceased to travel, decreasing NYC's tourism and, indeed, wreaking havoc on the airlines. Demand for travel-related services plummeted, and as a consequence, those searching for jobs avoided travel-related occupations, harming the industry even more.
The attacks prompted greater spending toward the war overseas, as well. Many conspiracy theorists thought the government might have staged the attacks to create an excuse to increase the United States' presence overseas, and though such theories are generally regarded as nonsense, more money began pouring into the war effort. Munitions, supplies, and the training of soldiers to be sent over all require large amounts of money, and the United States was quite willing to put much of its resources towards the war, in retaliation against those who had scarred America.
nick n 2BD
ReplyDelete9/11 effected America in many way including physical, financial, emotional, etc. I agree with richie about the fact that this was the worst day in american history.
The physical is obvious and i am not going to comment. The economics involved are extrodinary because so many businesses suffered loss. Airports suffered greatly because all planes were grounded. That and also people were afraid to fly. Some people still are afraid.
Financial falls in with economical as stated above.
Ona H. 2BD
ReplyDeleteSeptember 9th 2001 there was an attack on America. Two airplanes crashed into each twin tower, also another airplane went and crashed into the Pentagon. One wasnt so lucky to hit its target. The people on bored and also the crew tried to fight the hijackers to retake the plane, but sadly it fail and also succed by not letting to get to the destination to crash into the white house. Instead it crashed in a field near Shanksvill. Each passanger on all four planes died; no surivers.
This tragic event did reck our country. In many different ways. The economy has been declining since then. First the clean up of ground Zero did a heavy way on police, firemen, and people just to lend a hand. Also the war in Iraq isnt a help ether. Spanding billions of dollers on a countess war. these bring factors to now how jobs been getting scarce.
Mostly important is the people too. How humans act on such an awlful event is very difficalt to understand. How people act o each others now is different always suspicious of others. On there tiptoes all the time. Mostly more security around airports, whitehouse, banks, museums, important bulidings, and even more other places that dont come to mind. America is more tence now. Just hopfully it wont get worse
Nick R 3BD
ReplyDeleteThe events that occured on 9/11/01 caused lasting effects on the United States economy. Stock exchanges were closed from 9/11 to 9/17 which caused an obivious drop in the market.
The airline industry was virtually crippled as a result of the events on 9/11. All flights were grounded and every person who was unable to fly was given a refund. The fear of flying that many people developed caused the shares of airlines and airplane manufacturers dropped significantly. Airlines that were on the edge of bankruptcy such as Midway Airlines went under immediatley after the attacks. Short term assistance was provided by the federal government.
Tourism in NYC was nonexistent after 9/11. This caused massive losses in an industry that brought in $25 billion a year. 3000 employees were laid off in the week that followed along with a 40% drop in hotel occupancy.
Perhaps the only sector to be stimulated by 9/11 was homeland security. National defense funding increased tremendously while the private sector suffered.
Although the economic effects of 9/11 cannot compare to the emotional tramua but they cannot be dismissed.
Pat C 3BD
ReplyDeleteSeptember 11, 2001 will continue to live as one of the most traumatic events in United States history. The fall of the two towers and the ensuing chaos had both immediate and long lasting effects on the American economy and its consumers.
In the first 2 quarters following the fall of the two towers an already weakened U.S. economy dropped greatly. The economy had previously been in a trasition between an economy of unsustainable growth to a more sustainable growth rate. Although the events of 9/11 did cause a mini recession in the first two quarters of 2002 the economy rebounded and the economic effects of the tragedy seemed to have passed.
Unfortunately this was not the case. After adressing the immediate disaster the United States began pouring money into a plan to create a more secure United States. Money that would have been used to help increase productivity and for labor purposes were tied up in defense contracts further slowing an already stagnant economy.
Some of the worst long term effects were those surrounding the price and supply of oil. 15% of all U.S. imports come in the form of energy, mostly oil. Post 9/11 oil prices momentarily rose to impossible prices. In Agriculture both the 9/11 scares and anthrax scares contributed to congressional actions to regulate agriculture costing farmers millions of dollars. Insurance claims were estimated at over 40 billion dollars. Insurance companies afraid of bankruptcy due to more frequent terrorist attacks have restricted their coverage and only a few firms offer expensive, limited insurance for terrorist attacks. As Erik said over 18,000 businesses were directly or indirectly affected by this catastrophe.
Although the scare from the direct attack seems to have past the economic implications continue to affect an already stretched U.S. economy.
Connor B. - 3BD
ReplyDeleteAs Nick said, the NYSE was closed for 6 days. This happened to be the third time since March 1933 that the stock exchange closed for a prolonged period of time.
Almost immediately, the Federal Reserve added $100 billion in liquidity, and continued this daily for three days, attempting to avert a full-on financial crisis. This worked for the time being, but as my fellow classmates have said before me, the long-term effects took a toll on the economy. The general trend, obviously, was a rise in communication, pharmaceutical, and military defense stocks, accompanied by a severe blow to travel, tourism, and entertainment industries.
The attack made itself most apparent in the Big Apple, physically, emotionally, and economically. Approximately 430,000 jobs were lost in the city within the three months after the attack. Approximately 18,000 small businesses located in Lower Manhattan, near Ground Zero, were displaced or completely obliterated. Tourism in New York City, normally buzzing with people from around the globe, plummeted sharply. Although New York City has basically recovered, there will always be lasting effects, both quantitative and qualitative, of one of the most infamous dates in American History.
Paige Moore 2BD
ReplyDeleteThe attack of September 11th, 2001 was a tragic thing that effected the United States economy greatly. But before the attack the economy was at a slow down from the mid-2000's. The Feds were opening and operating payment systems.
After the attack, on a short term perspective it distrupted financial markets and consumer confidence. In a long-term perspective the economic activity that had fallen should rebound back. Sometime in the future, the economic downfall from the attacks will recover and be back to normal as they were before.
Gabe S. 3bd
ReplyDeleteThe September 11th attacks were one of the darkest days in American history. Details throughout the day were sketchy at best, and physical, emotional, and psychological effects are still being felt today.
As many people have previously stated, defense spending has increased by huge amounts, both on a federal level and also at a personal level. Both in new security inventions, or simply improved technology to the increase in actual security personnel, billions have been spent to make people feel more secure.
Several different economic areas faced a downturn in the wake of the attacks. One area that has not yet been discussed was the effect on professional sports. The opening week of the 2001 NFL season was moved into January of 2002, and all games were moved back a week, causing millions in lost ticket sales, the increased security stadiums were paying for, and the loss in advertising dollars. This also occurred in the MLB, where games were suspended indefinitely, potentially causing billions of dollars in lost revenue for stadiums, teams, and many local businesses who depended on the influx of fans on game-day who would buy souvenirs, food, alcohol and other goods.
The attacks on September 11th, 2001 shook our nation to its core. Fun pastimes were now being viewed as unsafe due to the potential security risks of gigantic stadiums with hundreds of thousands of people in attendance across the nation. Since then, sports are back in full swing, but some are still afraid to attend a professional sporting event.
Katie R. 3 b/d
ReplyDeleteMajor economic hardship was an immediate consequence of 9/11. Most notably within the stock market. As some others have said, the NYSE was shut down, as well as NASDAQ and the London Stock Exchange. The industrial average stock market index showed a sharp drop, creating nation- wide panic.
In international as well as national markets, travel and entertainment stocks were hit especially hard. Also, the price of gold and oil rose immediately. Lost wages for workers was about $2.8 billion as well. However, he largest toll from the attacks affected insurance and insurance companies. The total for insurance loses was nearly $40 billion, ranging from workers compensation to property loss and business interruption. Since most insurance companies do not offer such coverage, huge sums of money were lost.
Despite these losses, stocks in military, defense, communications, and pharmaceutical companies rose.
Obviously tourism and travel, especially associated with airlines, was completely devastated, and is still taking a toll today.
Emily B. 3BD
ReplyDeleteFollowing the tragic events of 9/11, the United States economy faced some serious challenges. One of the major industries to be hit by these events immediately was the airline industry. Conversely, the personal defense industry grew.
As Scott said, the airplane industry was altered dramatically following 9/11. The industry itself was almost killed because of what happened, and still has not fully recovered. New money had to pay for increased security so that people would feel safe enough to fly again. However, with new security measures, people also could no longer enjoy flying. It used to be that free soda and snacks were offered, and now a cup of water costs you. As much as the airplane industry has recovered, its new spending has not yet allowed it to thrive like it did before 9/11.
While the airplane industry has suffered for years, sales of personal defense items really grew, especially immediately following the events of 9/11. It may be obvious why people would be wary of flying, but most people in 2001 didn't even feel safe in their own home. Home security systems, guns, etc. became a way for people to feel secure again and so they put their money into those.
The economy has faced many challenges in the past, but I think that 9/11 is the most real for the youth of America.We have seen our families dealing with it, and we will be dealing with the economic repurcussions for years to come.
Cassandra Q
ReplyDelete3BD
9/11 is known as one of the worst days in american history, the first time anyone has started a war in american soil by killing thousands of innocent americans.
The attacks on the twin towers threatened the heart of the U.S. financial system. The attacks brought about the closing of the New York Stock Exchange, as well as closing brokerage houses and banks in the Wall Street area.the clearing of checks and the
distribution of paper currency was also effected making uncertain outcomes for financial institutions.
The attack did not only affect big business but small local bussinesses as well, nearly 18,000 businesses were destroyed, majority being small bussinesses.Compared to large firms, small ones seem to be particularly
vulnerable to disaster impacts and losses. Small businesses tend to have inadequate cash reserves, are less able to raise capital, and generally are unprepared to cope with disasters and their effects.Overall small bussinesses are extremely more vunerbale to drops in the economy, especially one as booming as the 9/11 attacks.
Hayley C. 3 b/d
ReplyDeleteThe terrorist attack on September 11 was a horrible day in America. The effects of this day caused the economy to go downhill with the increase spending on security and decrease airline travel.
There was an increase on security in the airports because everyone was scared of another terrorist attack. This money was spent to ensure the safety of americans, and to make everyone feel safe while traveling airfare.
But while there was an increase in security less people wanted to travel on planes because of the events of 9/11. Causing the airlines to loose money. No one wanted to travel on planes because of the plane crashes of 9/11. Needless to say the airlines suffered a great deal, causes a lot of airlines to almost go bankrupt.
The decrease of travel also effected the tourism in many different states. Tourism is a great way to increase the money coming into a state and when tourism goes down that state suffers. This caused harder economic stress all over america.
Like Gabe said Professional Sports were also greatly effected. Not only were their games pushed back and people who bought tickets lost their money there was also increase on security and decrease in ticket sales. The security needed to be increased because there was such a huge amount of people in one small area that it was an easy target. People were also scared to go to a place with that many people just because no one was sure if we were going to get attacked again.
The aftermath of 9/11 is still effecting our econmy today. Everything seems to have higher security, and even though it is 9 years later people still take caution while traveling on planes. Through this attack we lost over 3,000 Americans and the emotional and economical hardship that it brought on America is horrible and is still effecting us today.
Kenzie H 3BD
ReplyDeleteThe September 11th attacks on the world trade center had shortterm impacts on the United States economy as well as longterm impacts that affect even today's economy.
New york city, and more specifically lower manhattan were effected by the attacks. The central area surrounding the World Trade Centers found shortages in available jobs, including the majority of those being business jobs/financial companies. Multiple businesses in the World Trade center have lost positions for employers, these businesses in the financial department which overall,....is a major part of the US economy.
The three industries with the greatest job impacts were security, retail trade, and restaurants. There was an estimated 17billion dollars lost after the 9/11 Trade Center attacks.
Bree R 3BD
ReplyDeleteSeptember 11,2001 was a day that will never be forgotten.Thousands of innocent people lost there lives and the American economy was drastically affected by the events that transpired from that day.
Financial markets were hugely impacted after the tragic event. The New York Stock Exchange was closed for the third time in history. Actions were taken by the Securities and Exchange Commission to support the decreased market.
Airline security was also remarkably impacted by 9/11. After the hijacking citizens were afraid to fly. The amount of passengers decreased and therefore airlines lost money. The capital the airlines made was also put to higher security sysyems so that passengers could feel more protected.
During the time of 9/11 the agricultural economy was just beginning to step out of the recession. Directly following the attack importing and exporting goods became more difficult. Perishable items that were transported by air were delayed,such as fertilizer, and went bad before they were shipped to or from the US.
Unemployment was also greatly affected by the events of 9/11. Layoffs were common and the federal government was recieving less income because of the rising unemployment. Hotels and airlines were one of the first employers to let jobs go.
Sarah W.- 3 BD
ReplyDeleteThe Sept. 11th attacks were not only the most horrific terrorist acts in American history, but they also devastated the American economy. As many people above have addressed, the destruction of the World Trade Center cost the country billions in cleanup costs, federal emergency funding, and insurance losses. In addition, thousands of jobs were lost, as well as billions of dollars worth of wages.
Security became the United States' top priority after the attacks. As previously stated, airports had to spend more money on security measures such as scanners and metal detectors. Many airlines were threatened with bankruptcy because their clientele no longer felt safe travelling by airplane. In agreement with Hope, families across the nation bought more emergency supplies in preparation for future terrorist attacks.
One of the most incredible economic effects of the Sept. 11th attacks was the temporary standstill of Wall Street operations. When the World Trade Center collapsed, power and communications were shut down, and countless amounts of information had to be recovered, if not constructed all over again. Many corporate headquarters that were located in the Twin Towers were wiped out as well.
Without even elaborating on how oil imports were affected (as Patrick did), it is clear that the attacks that occurred on Sept. 11th greatly damaged America's econonomy. It will be a long time until the economy recovers completely, and it may take even longer for the American people to regain their trust in the country's stability and security. Even after the recovery, though, Sept. 11th will be remembered as one of the most infamous dates in American history.
Robert A. 2BD
ReplyDeleteThe morning of Tuesday, September the 11th, 2001, will have forever changed the history of the world and its economies.Many of the events that occurred that day had a different impact on the economy.
As many of my peers stated the Airplane industry was impacted on a wide range of levels. First off, many consumers did not want to fly for fear of another terrorist attack. Then there was the increase in security to ensure nothing like this happened again. The combination of increased fear and cost almost completely destroyed the aviation business.
The factors of search and rescue as well as cleaning up after the devastation also come into effect. When the towers collapsed and the pentagon was left in ruins, someone had to look for survivors and then clean up the mess. While there is the negative of paying these people, although many were volunteers, and for repairs as well, the people who were pouring into the cities brought new customers to the local businesses.
These are not the only tings that 9/11 has altered in the economy. Yet there are probably even more effects that are unknown at this date.
Steph M - 3B/D
ReplyDeleteAside from its other devastating effects, September 11th 2001 had huge effects on the national economy. It forever changed the airline industry, harmed the travel and tourism industry, and caused an increase in defense spending.
September 11th not only immediately caused the airport industry to suffer by grounding flights, but it also created a fear of flying that continued to stunt the industry. Fear of another attack also prompted the creation of new and costly security measures in airports. Today, instead of being able to arrive at the airport with barely enough time to dash to the gate, people arrive hours before their flights to be sure they make it through security and catch their flights.
Tourism in New York also declined as a result of September 11th. Restaurants and retailers (of non-essentials) in New York suffered from the decreased tourism as did hotels and local transportation services. Broadway theaters also reported a decrease in attendance along with other major tourist attractions. Tourism in other parts of the country was also affected as people’s fear of flying and traveling kept them at home.
Defense spending also increased as a result of September 11th. For the most part, an increase in defense spending is a drain on the economy. It takes money and resources away from things the market dictated they were needed for and puts them towards various defensive measures. That reduces economic efficiency and growth by leaving the production of goods and services unchanged but increasing the amount of labor and capital used.
September 11th caused many changes in the American economy. It forever changed airport security and with the increased focus on defense it caused it also slowed economic growth. However, the effects of September 11th were not limited to these few; there were many other effects, many of which were discussed in other posts.
Payne M
ReplyDeleteThe September 11th attacks were the most defestaing domestic and foreign events of the 21st century for the United States. In one day they changed the way the entire decade and possibly century would be handled by the US economically and militarily. The 9/11 attacks slashed the US ecnomoy directly in the final part of 2001 and the month of September due to the NYSE and London stock exchanges being closed down because of the attacks. However, the attacks indirectly or directly caused the US to change its foreign policy and increase Defense Spending for the next 9 years following the attacks.
In 2001 the President Bush launched the War on Terror with the US/UK led invasion of Afghanistan, in retaliation of the WTC attacks. The War on Terror was also increased by the US led invasion of Iraq in March of 2003. Both theaters of the War on Terror have accumulated to an estimated plus $1 trillion for the US in military spending. This sum of money has put the US's investment in winning the War on Terror on a global scale. The US has increased foreign military aid to other countries after 9/11 in countries such as, Pakistan which received an increase estimate of $9 million in US aid pre-9/11 to an estimated $4.2 billion following the attacks. Military Aid also increased in Yemen, which received an estimated $11 million in 2006 to over $70 million in 2009.
The terrorist enemy cannot be combated only on the battle field which is why the US must spend billions of dollars in military aid to foreign countries where the US is not currently in a state of war because the terrorist enemy has no political boundaries and can fight in any region. The War on Terror was launched in response to the 9/11 attacks, but has now grown to an entire global offensive which, in order to win, must be fought in the hearts and minds of the children and cultures of the countries in which the terrorists evolve from. Unfortunately this means that in order for the US to win, it must put money into the counter-insurgency campaign it is now launching which requires money to build things like new schools and US embassies to combat the cultural aspect of the War on Terror. If the US wishes to win this battle and defend the attacks on 9/11 and prevent further attacks anywhere in the world, then the spending must continue and could possibly result in an economic and military quagmire in a foreign region of the world.
Ryan S. 3/BD
ReplyDeleteThe Septmeber 11th attacks were the worst acts of terrorism on American soil throughout the countries history. Not only was there devastating loss of life and the destruction of two symbolic buildings the attacks on september 11th also shook the nations economy.
One of the worst hit industries was the airplane industry. Stocks and sales plumeted as people feared more attacks. Also in an attempt to increase security in the United States large sums of money were spent to improve security and ensure that attacks of that magnitude did not happen again. As more resources were spent on increasing the security of the United States labor and capital that could have been spent on increasing the productivity of the nation were used to defend it.
Another result was the loss or disruption of close to 18,000 small businesses that operated in or near the world trade center and the area around where the towers once stood. With the attacks being in New york the tourism in the city also suffered severly. With the loss of an important part of the states income the City was put in severe stress with relief and rebuilding. However none of these compared to the invaion of Iraq and the following involvement of troops in the middle east. Billions of dollars are spent attempting to locate the terrorists and eliminate them. However as the organizations are small but supported it is an intense job.
Mr. Frese- Blocks 2BD/3BD
ReplyDeleteMost of you used basic themes and discussed the key points well. Many of you referenced the war and national security costs, airlines and tourism, and the general economic backlash in the stock market.
Is America, and are Americans, still economically recovering today directly from 9/11? What do you think the economy will be like in 5 years? 10 years?
All of you are coming into crucial times in your young financial lives. Are you optomisitic or pessimistic about your economic future?
Erika BS!
ReplyDeleteMr. Frese-Blocks A,C
8:45 a.m., September 11th, 2001 one of the most memorial horrific events were taken place in United States New York which greatly affected our economy in many ways. First series of the terrorists attacks took place at 8:45 a.m when two airlines intentionally struck the World Trade Center in New York. The third passenger plane crashed into the Pentagon which was the worlds biggest office buildings.
The impact of the September. 11, 2001, terriorist attack affected New Yorks economy in many different ways. According to studies researchers found that New York and Washington D.C, the economy ranged from $35 billion to $109 billion for just domestic product.
In international and domestic markets,stocks of companies in some sectors were hit pretty hard. Travel and entertinment stocks fell, while communication pharmaceutial and military/defense stocks rose. The cost of injuries, illnesses, tauma, are also more costs that will be funded by business interruption insurance. Most people fortuantley should have health plans or disability insurance.
Since 9/11 many things have changed especially security. This experience opened the eyes to the Goverment to take action and are highly preparing and or prepare for any future events that might take place from a terrorist attempt. This experience can be applied towards future planning and preparation for any kind of terrorist attack.
I believe times of tragedy we al should be reminded of more reasons why we really should study history. Because of the knowledge you take in from the past it hels to understanding the present and even shaping the future. No one in the world can predict the outcome of any events. Although some events can be hard to fathem and more tragic distruptions of our economy will occur, sticking together, keeping your head up high and never taking anything for granted should keep New York state hopefully okay. I have faith in our country, as long as we play our cards right.
Andrew D. 2/BD
ReplyDelete9/11 had a lasting impact on the American economy that even up to today can still be seen. Security, stocks, tourism, and airfares all were effected by the attack.
Obviously, the government starting putting in more money to national security to increase America's defenses and to fuel the war in the Middle East. Now around New York City and other major cities, you may notice an increase of military action.Airfare was almost nonexistent after the attack due to the fear that America still feels towards the occurrence of another attack. Many people still have phobias of flying and for that tourism has decreased.
I believe that America is still recovering from the 9/11 attack. The physical and emotional toll will never be forgotten. Even though at the time I couldn't comprehend what was going on, as time grew by I started to gather the information and understand.
Meeghan A. 3-bd
ReplyDelete9/11 and its lasting impact of the economy today is still in effect. There was a major increase in airport security, that still is in effect today. The government put in a lot of money to increase the American defenses and to help the war.
After the attack there was no airfare. Nobody was to fly, airlines shut down their flights. One effect that is still in effect today is there is not many people that fly in general anymore, people are afraid which does not help with the tourism.
sports were also affected by this awful day. For months sports were postponed until they were eventually started up again. They did not have professional sports because the amount of fans that attended each game was risky.
America is still recovering from this day and I believe will be for many years. This day will never be forgotten in the eyes of the people.
Kaitlynn N. 2BD -
ReplyDeleteThe tragedy of events taking place on September 11, 2001 has taken a huge toll on our country as many civilian lives were murdered. Soon after this national disaster, national security has increased as well as the costs to repair the damage.
Four days following the attacks, Wall Street had been put on hold as the US stock market was shut down. The shutting down of the stock market only added tension to the economy as stocks fell drastically when they re-opened.
Our country became divided as people were pointing fingers at each other for whose fault it all was. Some felt as though the Clinton administration and Bush should have dealt with the crisis better and found a way of preventing it from happening.
Even the costs spent in order to restore what was destroyed took a steep toll. A total of $14 billion went toward private businesses, $1.5 billion to State and local government enterprises and $0.7 billion to federal government. Then on top of that; rescue, clean up and restoration added up to $11 billion.
Mike C.- Block 3B/D
ReplyDeleteSeptember 11th not only had an immediate impact on the economy, but it also had a long term effect. From small business's, to airplane companies,from blocks away to miles away everyone was effected by 9/11.
9/11 effected small businesses throughout New York, businesses that were close to the attack were immediatly shut down. The sector that was attacked employed over 280,000 people and brought in over 25 billion per year plummeted. Tourism in all of New York City dropped drastically.
Not only did this tragedy cost many people there lives, but it also cost businesses alot of money. During the time of the attacks businesses all around the area $11 billion, not including the property damages that amounted to around $9.6 billion.
In the three months following the attack over 430,000 jobs were lost. Another giant impact 9/11 had on the economy was the airlines. Not only the airline that was attacked but all airlines had to step security way up to help ensure passengers that something as horrible as this could never happen again.Air lines were near bankruptcy and required financial assistance from the government.
9/11 has not only impacted the lives of the victims but also people all over the world.