The Economic Impact of the Attack on the World Trade Center and the Pentagon

The events of 9/11 further set back an already fragile economy (Figure 2). It heightened uncertainty, shaken confidence, and caused a widespread pullback from economic activity. Equity prices fell sharply for several weeks and credit risk spreads widened. The main focus of the Federal Reserve in the first few days following the attacks was to reinstate the infrastructure of financial markets and to provide massive quantities of liquidity to the functioning of those markets. The enhanced economic fallout from the events of 9/11 led the Federal Open Market Committee (FOMC) to cut the target federal funds rate through the end of the year. (Federal Reserve Board, 2002)

However, the deaths are not the only loss the 9/11 attacks created but the economic costs were also a significant blow to the United States. The direct cost losses being related to the damage caused by the destruction of the buildings include but are not limited to; the loss of the four civilian aircrafts with a value of $385 million, the replacement cost for the destruction of the buildings amounting to $4.5 billion, $10 to $13 billion of property and infrastructure damages, a loss of 17$ billion in lost waged and direct job losses along with considerable losses exceeding $45 billions in insurance industry and traffic revenue (Institute for the analysis of Global security). But the damages don’t cease there. In fact, according to the report published by Watson Institute for International Studies of Brown University, the US governments’s

The United States entered “The Great Recession” in December of 2007. Its impact was felt by nations all around the world. This event triggered the loss of 8.8 million jobs around the country and created a sense of economic instability. I’m very interested in finance and stocks, so this provided an incentive to be careful with my purchases and investments

The September 11 attacks were set of four terrorist attacks controlled by al-Qaeda, an Islamic terrorist group. On September 11, 2001, four aircrafts were hijacked by the terrorists; two of the planes hit Twin towers in New York, third hit the Pentagon and the fourth one crashed into a field near Shanksville, Pennsylvania (“9/11 Attacks”). The September 11 attacks had several long-term negative effects that include Social effects, Psychological effects, Physical health effects, Economic effects and many more. But of all those effects, Economic effects were the most suffered ones. The 9/11 attacks triggered the devastation of American economy (Miley). Although it has been 12 years since the episode and America has recovered a lot, American

According to CNN report on September 11th Terror Attacks Fast Facts, at the World Trade Center, 2,763 died after the two planes slammed into the twin towers. That figure includes 343 firefighters and paramedics, 23 New York City police officers and 37 Port Authority police officers who were battling to vacate the buildings and save the office workers who were stuck on higher floors. At the Pentagon, 189 people were died, including 64 on American Airlines Flight 77, the airliner that struck the building. On Flight 93, 44 people died when the plane crash-landed in Pennsylvania.

It seems that the United States is approaching a crucial moment both for the real economy and for the financial crisis that caused this severe recession. Of course, this is good news that comes after many months of bad news, but we must continue to take into account how extremely difficult it is to forecast the behavior of the economy and financial markets during the crisis. The general predictions have been wrong again and again, and unexpected and even unprecedented events have followed one another closely. A cautious optimism should be the order of the day. We fear that the recent reactions of financial markets and some analysts reflect too much optimism without paying sufficient attention to uncertainty. Public policies should continue

Greetings and salutations to the CEO of the organization. To help you interpret policies make by the Federal Reserve, I am here as an interpreter to help you understand the policies that are in place due to the natural disasters that have happened around the world. In October the Group of 30 International Banking had a seminar located in the nation’s capital. The consultation of the report will discuss the present status of where this country’s economy is and why the economy has been affected. This information allows us to determine the effects to the corporation’s state before and after.

The sensationalized depictions of Palestinians have affected a good majority of people in the United States. Following the 9/11, attack on the World Trade Center is a perfect example why. It was one of our nation’s greatest losses and a genocide that will never be forgotten. After the incident occurred, our media made it very clear to the people that it was done by members of the Muslim religion. Now people from all around the World started to associate terrorism with a specific look and religion. However, this doesn’t excuse why human rights have been violated since the beginning of time and in the reading, the Palestinians have been forced from their land by the Israelites and placed in refugee camps, they are also discouraged from speaking

Simmons is a 130-year-old mattress manufacturer that was hit hard by the economic downturn caused by the attacks on the World Trade Center towers on September 11th. The economic downturn had caused three of the furniture company’s best customers, Montgomery Ward, Heilig Meyers, and HomeLife, to go out of business. This group represented roughly 17% of the revenue for Simmons. To make matters worse, the foam Simmons used for its bed cushioning began to give off a malodorous smell when it was used in Simmons products.

The War of Terror led to economic problems in the United States. A lot less money was being spent on it's many domestic affairs. The 9/11 attacks introduced a new plethora of challenges. The 2008 financial crisis was still an ongoing predicament; consequently, fewer funds were available to boost the United States out of the economic deficit (Amadeo). This had a drastic impact on the country's unemployment rate. It was at 5.1 percent as of August of 2002 (Yerger). The United States was certainly detrimental in it's economics; nevertheless, various national organizations decided to fight back. In mid-October 2002, the Department of Transportation sent a proposed legislation to Congress in hopes of strengthening security and safety in transportation

The Sept. 11, 2001 attacks on the world Trade Center in new york was stunning the media globally, it even caught mass attention and caused reams of discourse, writing, and reflection. These media spectacles were supposed to terrorize the U.S., to attack symbolic targets, and to unfold a terror spectacle Jihad against the West, likewise on undermine the U.S. and world economy. The world Trade Center is an important image of world capitalist economy within the heart of the New York money district, whereas the Pentagon stands as an icon and center of U.S. military power. There followed a media spectacle of the very best order. For many days, US TV suspended broadcasting of advertising and television amusement and targeted only on the big events

The September 11th attacks on the world trade organisation left the world in shock, changing the lives many individuals, organisations, countries and economies. It has affected the world of business and politics in many ways and these effects are still continuing to occur. Following the attack, it was difficult for New York to derive the specific economic costs, hence making it harder for the American government to introduce plans aiming to resolve the situation. However after examining and quantifying the impact of the attack a leading team of New York economists and consultants have detailed the effects.

4. Several major airlines filed for bankruptcy. Many airlines significantly decreased their capacity, reduced their routes and postponed purchases of new aircraft. Some airlines reported a 50% reduction in routes and flight frequency. All these events provided opportunities for the low-cost carriers not only to increase the number of flights but also to introduce services on new routes.

On the 26th of November 2001, the National Bureau of Economic Research, declared that after ten years of economic expansion, the United States was in a recession as of March 2001 (Coplan 9). During the last quarter of 2001, the United States experienced a terrible tragedy; the 9/11 terrorist attack. However, economists believe that even if the terrorist attack had not taken place, the recession would have still been present, but it did in fact delay recovery. The recession of 2001 was by far different than all the other recessions. It was in fact, better than other recessions because the 2001 only lasted a quarter. Real GDP barley changed and the unemployment rates slightly rose (Nordhaus 2). It was found that banks have improved their performance during the recession, they were prepared for the worst this time around. During the 1990s, risk management became an important factor for banking discipline. Using risk managements, it gives the economy a potential to increase the stability. Thereby, banks benefited from an environment that rapidly declined short term interest rates, which enabled them to borrow at a lower cost (Schuermann 2). These risk managements played an important factor during the recession while impacting the United States economy in a positive manner.

The day that took thousands of innocent Americans lives, September 11th, 2001, will forever be marked as an infamous day in American history. Four commercial airplanes were hijacked by an unknown group of terrorists, as all four planes aimed to hit major buildings such as the World Trade Center. Three of the four were successful as the fourth went down in a field in Western Pennsylvania. President Bush pinned the al Qaeda, a Muslim extremist group led by Osama bin Laden, as the group behind the terrorist attack. Since its charter, North Atlantic Treaty Organization (NATO) came together for the first time since inception to participate in said “war” (“War on Terrorism”). Congress later approved forty billion dollars’ worth of emergency