911 economy

It’s no shock that the terrorist attacks that occurred on September 11, 2001 caused a great deal of negative impact on the United States and the whole world as this attack led to over three thousand deaths of American citizens and installed fear into the rest of America and other countries as they did not want this horrifying event to strike them. These terrorists ultimate goal was to dent and cripple the United States economy by taking down its National Trade Center in order for them to lose money in stock markets, lose trading opportunities with countries like Canada, and cause Americans to spend billions of dollars towards the damage repair.

This event definitely caused a lot of humiliation towards the US government as how they let hijackers pass security and take control of the airplane so they could be flown into buildings as a suicide attack. Their image was ultimately trashed. Following the attack, stock exchanges did not open on that fateful day and remained closed for 6 days. It was estimated that 1.4 trillion dollars were lost in those 6 days (Tilford). Stock markets were also having their worst week on September twenty-fourth since “The Great Depression” in 1933. This is important to know as it shows actually how bad an effect nine-eleven had on the US economy.

Stock investors also lost a great deal of confidence with the US. When stocks re-opened, they experienced a 7.1% drop, which changed to 14.3% by the end of the following week (Tilford). Not only Americas economy was affected financially, but other countries too as they lost great trading opportunities with their main partners, the US. The United States exported goods to other countries, which that nation sold to make money. Since the exports were shut down, other countries had no or little goods to sell to their citizens. This definitely slowed down that countries income and possibly led to a depression. Ultimately, the countries economy would start to drop sharply.

Also, within Canada and the US, there has been an increase of regulations and intensified inspection procedures at the Canada-U.S. border as contributing to significantly higher shipping costs and shipment delays. The higher costs and associated disruptions to commercial shipments might be inferred to discourage growth of trade between the two countries. It is now widely accepted that economic integration between the Canadian and U.S. economies is, on balance, an important contributor to the economic health of both economies, especially Canada’s. Damage repair relating to economic development was not cheap.

In New York City, about 430,000 job-months and $2.8 billion dollars were lost in wages in three months after the attack. The city’s GDP was estimated to have decreased by $27.3 billion for the last three months of 2001 and all of 2002. The US government granted New York City $11.2 billion in immediate assistance and $10.5 billion for the year of 2002 for economic development. The bottom line is, the US economy is legendary for its horrendous strength and resilience, which makes the nations character optimistic.