I. Introduction Throughout history every society has faced the fundamental economic problem of deciding what to produce, and for whom, in a world of limited resources. In the 20th century, two competing economic systems, broadly speaking, have provided very different answers: command economies directed by a centralized government, and market economies based on private enterprise. A market economy system is one in which a nation’s economic decisions are the result of individual decisions by buyers and sellers in the market place.
Market economies are, by their very nature, decentralized, flexible, practical and changeable. The central fact about market economies is that there is no center. Indeed, one of the founding metaphors for the private marketplace is that of the “invisible hand. ” No market is a purely a market economy. The US economy system is commonly believed to be nearly a market economy system because it sustains a free enterprise system which allows people to be free to go into business on their own. Historically, the U. S. government policy toward business was summed up by the French term laissez-faire – “leave it alone.
” The concept came from the economic theories of Adam Smith, the 18th-century Scot whose writings greatly influenced the growth of American capitalism. Smith believed that private interests should have a free rein. As long as markets were free and competitive, he said, the actions of private individuals, motivated by self-interest, would work together for the greater good of society. The American belief in “free enterprise” has not precluded a major role for government. However, the US government still plays a vital role in economy.
People have relied on government to address matters the private economy overlooks, from education to protecting the environment. II. Main points 1. The terrorist attack 9/11 1. 1. The reasons of the attack + Approvals imposed against Iraq. On 6 August 1990, after the Iraqi invasion of Kuwait, the U. N. Security Council adopted Resolution 661 which imposed economic sanctions on Iraq, providing for a full trade embargo, excluding medical supplies, food and other items of humanitarian necessity, these to be determined by the Security Council sanctions committee.
After the end of the Gulf War and after the Iraqi withdrawal from Kuwait, the sanctions were linked to removal of weapons of mass destruction by Resolution 687. From 1991 until 2003 the effects of government policy and sanctions regime led to hyperinflation, widespread poverty and malnutrition. In the 1998 fatwa, Al Qaeda identified the Iraq sanctions as a reason to kill Americans: “despite the great devastation inflicted on the Iraqi people by the crusader-Zionist alliance, and despite the huge number of those killed, which has exceeded 1 million…
despite all this, the Americans are once against trying to repeat the horrific massacres, as though they are not content with the protracted blockade imposed after the ferocious war or the fragmentation and devastation…. On that basis, and in compliance with Allah’s order, we issue the following fatwa to all Muslims: The ruling to kill the Americans and their allies—civilians and military—is an individual duty for every Muslim… ” In the 2004 Osama bin Laden video, Osama calls the sanctions “the greatest mass slaughter of children mankind has ever known.”
+ Presence of U. S. military in Saudi Arabia. The continued presence of US troops after the Gulf War in Saudi Arabia was one of the stated motivations behind the September 11th terrorist attacks, and the Khobar Towers bombing. Further, the date chosen for the 1998 United States embassy bombings (August 7), was eight years to the day that American troops were sent to Saudi Arabia. Bin Laden interpreted the Prophet Muhammad as banning the “permanent presence of infidels in Arabia”. In 1996, Bin Laden issued a fatwa, calling for American troops to get out of Saudi Arabia.
In the 1998 fatwa, Al-Qaeda wrote “for over seven years the United States has been occupying the lands of Islam in the holiest of places, the Arabian Peninsula, plundering its riches, dictating to its rulers, humiliating its people, terrorizing its neighbors, and turning its bases in the Peninsula into a spearhead through which to fight the neighboring Muslim peoples. ” In the December 1999 interview with Rahimullah Yusufzai, bin Laden said he felt that Americans were “too near to Mecca” and considered this a provocation to the entire Muslim world. + Support of Israel by United States
In his November 2002 “Letter to America”, Bin Laden described the United States’ support of Israel as a motivation: “The expansion of Israel is one of the greatest crimes, and you are the leaders of its criminals. And of course there is no need to explain and prove the degree of American support for Israel. The creation of Israel is a crime which must be erased. Each and every person whose hands have become polluted in the contribution towards this crime must pay its price, and pay for it heavily. ” In 2004 and 2010, Bin Laden again repeated the connection between the September 11 attacks and the support of Israel by the United States.
Support of Israel was also mentioned before the attack in the 1998 Al-Qaeda fatwa: “The aim of the United States is also to serve the Jews’ petty state and divert attention from its occupation of Jerusalem and murder of Muslims there. The best proof of this is their eagerness to destroy Iraq, the strongest neighboring Arab state, and their endeavor to fragment all the states of the region such as Iraq, Saudi Arabia, Egypt, and Sudan into paper statelets and through their disunion and weakness to guarantee Israel’s survival and the continuation of the brutal crusade occupation of the Peninsula.
” + Provoke war with the United States Some middle-east scholars like Michael Scott Doran and Peter Bergen have argued that 9/11 was a strategic way to provoke America into a war that incites a pan-Islamist revolution. Michael Scott Doran argued that the attacks are best understood as being part of a religious conflict within the Muslim world. In an essay, Doran argued that Bin Laden’s followers: “consider themselves an island of true believers surrounded by a sea of iniquity”.
Doran further argued that bin Laden hoped U. S. retaliation would unite the faithful against the West, sparking revolutions in Arab nations and elsewhere; and that the Osama bin Laden videos were attempting to provoke a visceral reaction in the Middle East aimed at a violent reaction by Muslim citizens to increased U. S. involvement in their region. Correspondent Peter Bergen argued that the attacks were part of a plan to cause the United States to increase its military and cultural presence in the Middle East, thereby forcing Muslims to confront the idea of a non-Muslim government and establish conservative Islamic governments in the region.
1. 2. The attack “9/11” is shorthand for four coordinated terrorist attacks carried out by al-Qaeda, an Islamist extremist group that occurred on the morning of September 11, 2001. The attacks killed 2,977 people. The planes left the airports on the morning of September 11. Their original destination was California, so they had tons of fuel on board. Sometime after take-off, the terrorists took over the planes. Some of them had pilot training.
On the morning of September 11, 2001, 19 terrorists from the Islamist extremist group, al-Qaeda, hijacked four commercial airplanes, deliberately crashing two of the planes into the upper floors of the North and South towers of the World Trade Center complex and a third plane into the Pentagon in Arlington, Va. The Twin Towers ultimately collapsed because of the damage sustained from the impacts and the resulting fires. Because the Twin Towers, as the centerpieces of the World Trade Center, symbolized globalization and America’s economic power and prosperity. The Pentagon, as the headquarters for the U.
S. Department of Defense, serves as a symbol of American military power. After learning about the other attacks, passengers on the fourth hijacked plane, Flight 93, fought back, and the plane was crashed into an empty field in western Pennsylvania about 20 minutes by air from Washington, DC. Al-Qaeda hoped that, by attacking these symbols of American power, they would promote widespread fear throughout the country and severely weaken the United States’ standing in the world community, and supporting their political and religious goals in the Middle East and Muslim World.
It was soon found out that fifteen of the 19 terrorists were from Saudi Arabia. Two were from the United Arab Emirates, one was from Lebanon, and one was from Egypt. In addition, Osama Bin Laden and his terrorist organization Al Qaeda had been behind the attacks. 1. 3. The general impacts after the attack: Almost 3,000 people died in the attacks in from 93 nations, including 2,753people killed in New York, 184 people killed in Pentagon and 19 hijackers aboard the four planes. It also was the deadliest incident for firefighters in the history of the United States.
The destruction of the Twin Towers and other properties caused serious damage to the economy and had a significant effect on global markets. Many closings, evaluations and cancellations followed the attack. The stock market closed for four trading days after the attacks, the first time since the Great Depression. ( In March 1933, President Roosevelt closed the markets for two days, as part of a bank holiday to prevent a run on the banks. ) In New York City, about 430,000 job-months and $2. 8 billion dollars in wages were lost in the three months after the attacks. The economic effects were mainly on the economy’s export sectors.
The city’s GDP was estimated to have declined by $27. 3 billion for the last three months of 2001 and all of 2002. The cost of this disaster is loss of more lives, prosperity and freedom. 2. Impacts on economy and the government’s solution Sectors Impacts Government’s Solutions Roles of Government Layoffs and Unemployment Benefits. _ Overlaid on a labor market already weakened by recession were extended mass layoffs attributable to 9/11 that displaced nearly 130,000 employees. _ The air transportation industry laid off 38% of these employees, and the accommodations (hotel and motel) industry, 23%.
-Congress introduced legislation that would have provided additional assistance to those workers displaced from jobs in certain industries as a result of the terrorist attacks and subsequent security measures. – Congress also provided a legislation that would temporarily extend benefits for all individuals who exhausted their regular UC benefits. (The federal-state Unemployment Compensation). – Many programs were offered to benefit eligible workers such as: The Temporary Extended Unemployment Compensation (TEUC); the Job Creation and Worker Assistance Act of 2002 etc.
– For persons who were not eligible for regular UC benefits, there already existed Disaster Unemployment Assistance (DUA), which were payments to those whose employment or self-employment was lost or interrupted as a direct result of a major disaster. Government as a provider of goods and services. _ Government made transfer payments and created new jobs to help unemployed people to have stable life. The airline industry _ A year after the attack, significant numbers of airline employees remain laid-off or may yet be subject to layoffs.
_ Boeing and its subcontractors have laid-off significant numbers of employees and production of new aircraft has been reduced. Airline service providers, such as caterers and airports, as well as the travel industry, also are experiencing revenue losses. _ According to the Air Transport Association (ATA), the airlines lost approximately $1. 4 billion in revenue during the four-day shutdown of the national aviation system in the immediate aftermath of 9/11. _ Since service resumed, they have continued to lose money as significant numbers of travelers avoid flying, opting instead to use other means of transportation or to just stay home.
– Congress and the Bush Administration moved swiftly to provide the airline industry with federal financial support. – The Air Transportation Safety and System Stabilization Act signed into law on September 22, 2001, gave the airlines access to up to $15 billion in short-term assistance and allowed long loans of the industry for longer stability. – The federal government essentially provided gap insurance, with the hopes that the regular private insurance market will become available in the months ahead. _ Government as a help to weak business group.
_ Government as a producer in absence of business venture. Agriculture and food sector Following the heel of the 9/11 even is the anthrax attack, which caused more dramatic and more immediate effect. U. S farm and food supply are highly vulnerable to intentional cotambination by organism or chemical injurious to crop, animal, or human health. -The Farm Security Rural Invesment Acts provided several kind of income and price support protection to producers of major U. S crop (wheat, feed grain, cotton, rice, soy beans,…) Reauthorizing and expanding USDA program to promote agricultural export.
-Federal food safety regulatory agencies took action to improve the protection of the food supply. – The department of Health and Human Services Food and Drug Administration began hire 400 additional employees for inspecting imported foods. – President Bush signed a bill that made available the second half ($20 million) of the emergence defense funding appropriated after the September attack. In this situation, besides the support of some social organization, government was as a financial provider to help them to keep their action in order to improve consequence after the attack.
After this attack, it destroyed nearly 18. 000 businesses- the vast majority being small businesses in and around New York City’s world Trade center. They tended to have inadequate cash reserves, are less able to raise capital, and are unprepared to cope with disasters and their effects. Economic disruption quickly spread to countless firm across the United States. -The U. S small business administration (SBA) helped small firms by means of an assortment of long- standing loan and managerial assistance programs. – SBA dispatched employees from its headquater and regional office to augment its staff in New York city.
-The federal government also provided financial assistance for small business in and around World Trade Center (WTC) in the form of Community Development Block Grant funds. -The Physical disaster and Economic Injury Disater Loans provided funds to eligiable small business to meet the ordinary and necessary operating expense they are unable to meet. Government is a help for small business known as “entrepreuneurs”, who take a vital part in U. S economy. Funds from government are very important for them to recover their works after the attack. III. Conclusion The roles of government.